Fannie Mae-No Politics (FNMA)

[Wise Man]

Adjusted BVPS in $FMCC= $170.
Adjusted for the Separate Account plan (Common Equity held in escrow), calculated with the Common Equity as of June 30, 2008, and then, the Accumulated Total Comprehensive Income, adjusted for charges for 3 Accounting Standard adoptions during Conservatorship, plus

- A refund of the CRT expenses, net (illegal in the Charter Act: Credit Enhancement clause. The conservator has no authority to override the law.), plus

- The settlement of the PLMBS lawsuit, net of attorney fees. Freddie Mac gets 73% of total, based on the AOCI (Unrealized losses in PLMBS) as of June 30, 2008, compared to Fannie Mae. A product illegal in the Charter's Credit Enhancement clause as well. This is why Timothy Howard drives us repeatedly to a debate about the economic sense of the CRT, in order to conceal this clause that he violated with the PLMBS, and contributed to the Conservatorship: AOCI isn't captured in the statutory Core Capital, unlike the new CET1 and Tier1 capital. PLMBS, the grounds of fraud with fraudulent information, mispricing,... Let alone the contribution of the stock buybacks, an investment barred in the Charter Act too. $7B Treasury Stock in Fannie Mae reduces the Net Worth and the Core Capital.