Fannie Mae-No Politics (FNMA)

[Wise Man]

You want to restore capital 15 years into Conservatorship, starting from an adjusted $-194 billion Core Capital as of September 30, 2023 (ERCF tables).

The reason why the SPS LP increased for free every quarter (Capital distribution #1. Restricted) is missing in their balance sheets, is explained visually in this screenshot of Freddie Mac. The plotters don't want you to see the offset attached when someone hands out stocks for free and how the Common Equity is held in escrow as a result, complying with the exception to the Restriction on Capital Distributions (CFR1237.12: for Recap) and the FHFA-C's Rehab power: put FnF in a sound and solvent condition.

FnF are NOT building regulatory capital but SPS.


Hence, their $118B Net Worth is the $118B SPS LP absent from the Balance Sheets. Capital Reserve = $0 (amount of Net Worth above the Capital Stock), not $118B, and an invalid capital metric in FnF, subject to the FHEFSSA. That's the Federal Reserve System with its "Capital Surplus".

Also it would prove that the same occurred with the other capital distributions (10% and NWS dividends. Capital distribution #1. Restricted), first applied towards the reduction of the SPS. 12 U.S. Code § 4614 (e). Then, Recap CFR1237.12.

A whopping $402 billion core capital shortfall over Min Leverage Capital requirement?

Just say that you are annoyed because the dividend is kept by FnF for their recapitalization as always, and there's been Regulatory Risk (Basel framework for capital requirements).