Fannie Mae-No Politics (FNMA)

[Wise Man]

Bill Ackman is defending the indefensible.
No matter how many PR campaigns he is always involved in, when he carries out conspiracies, like commissioning the KBW report released at the same time he published the GSE slide yesterday.
The E in EPS=$0
Income Statement.


, is the same E in Retained Earnings that Ackman claims is being retained by FnF.
Balance Sheet. Changes in Equity.


The same E to assess the Common Equity and CET1 for the ERCF.
Always $0. FnF are NOT building regulatory capital.

There are no excuses based on the Financial Statement fraud in FnF that don't post the SPS LP increased for free and its offset (reduction of Retained Earnings -Core Capital- that happens always when someone issues/increases stocks for free, like the initial $1B SPS issued for free in FnF. Someone has to pay for it) on the Balance Sheets.


Anyone could see, first, the SPS LP increased for free is a capital distribution restricted (#1 in the statutory definition of capital distribution). Secondly, that FnF are posting $0 EPS. Thirdly, that it's a breach of the FHFA-C's Rehab power: "put FnF in a sound condition". Soundness measured with capital levels in a financial company.


Then, there is no wonderland as claimed by the attorney for Berkowitz, David Thompson in the Collins, Rop and Bhatti cases, seeking "constitutional damages", where the UST gets rich with SPS LP increased for free and, at the same time, FnF are being recapitalized.
The same Common Equity Sweep as before. Now a 3rd phase that Trump started out with the template laid out by Watt-Mnuchin in the December 2017 PA amendment ($3B SPS LP increased for free and its offset, absent from the balance sheet for the first time, when the Applicable Capital Reserve was raised to $3B. Who told them that they can put limits, Federal Reserve-style? All part of the Separate Account plan. A plan of deception.)
Otherwise I don't know why JPS, GS, etc, don't do the same each quarter.
BOTTOM LINE
Necessarily the capital distributions are applied towards the exceptions in the law/CFR in order to legalize them.
That is, the Common Equity is held in escrow and the SPS are long gone.
Ackman conceals it to transmit a sense of normalcy, instead of being in the 3rd phase of the Separate Account plan (SPS LP increased for free, a joke "in the best interests of the FHFA". Zing!)

ACKMAN'S🆕GSE SLIDE,WRONG
▪️"FnF continue to build capital through RE",based on Financial Stmnt fraud(SPS/offset absent from B-Sheet)
👀 $0 EPS
▪️Unaware the #SCOTUS called for Rehab:Capital(not profitability)+↓SPS,as of day 1,"in the interests of FHFA"(Separate Acct)#Fanniegate https://t.co/dNNN7V9n6b

— Conservatives against Trump (@CarlosVignote) February 26, 2024