Fannie Mae-No Politics (FNMA)

[Wise Man]

Are you aware that FnF post $-68B Core Capital?
That's the official figure posted in their ERCF tables (image below), as seen in their Earnings reports.
The Core Capital drops to $-194B with the adjustment mentioned before (Reduction of $125.4 in the Retained Earnings account) when someone issues/increases stocks for free. For instance, FnF with the initial $1B SPS issued for free, debited from the Additional Paid-In Capital account (Core Capital as well), an account now exhausted:


A whopping $402B capital shortfall over $208B minimum Leverage Capital requirement.
Again, you must be talking about different companies:

they'll have plenty of reserves to soon redeem the preferred at par.

It's with the Separate Account plan, when FnF can redeem the JPS, because their combined CET1 stands at 2.8% of the Adjusted Total Assets as of end of 2023 (2.7% in Fannie Mae; 2.8% in Freddie Mac). It means that, after the redemption of JPS (AT1 Capital), they would comply with the Tier 1 Capital > 2.5% of the Adjusted Total Assets (ERCF)
T1 Capital = CET1 + AT1
By the way, afterwards, they would have 40% and 102% of their Prescribed Capital Buffer, respectively, and the threshold for the resumption of dividend payments is 25% (Table 8: Payout ratio, in the Capital Rule.)