Fannie Mae-No Politics (FNMA)

[Wise Man]

Navy Hedge Fund promoting the hedge fund manager Alec Mazo's tweets once again, for the slogan that I denounced just one day before: "Net Worth is what meets the capital requirements".
These two members of The Group repeat the same gig staged on February 14, 2023:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171209916
Alec Mazo must have been warned, this is why now he refers to the amount "on the balance sheets" without specifying which concept is he talking about.

Two approaches, because there is The Bill Ackman Way that calls "Capital Reserve" the amount that has to meet the capital requirement, pursuant to Calabria-Mnuchin: "Capital Reserve End Date".

Alec Mazo has chosen The Sandra Thompson Way, like the former FMCC CEO, Layton: "Net Worth is what meets the capital requirements".

This is why the Capital Shortfall column was removed from the ERCF tables, so that The Group flourishes.


Besides in the ERCF tables, the capital metrics that meet the capital requirements are found in the FHEFSSA definitions of each Capital Classification:
-Adequately Capitalized: Total Capital greater than the Risk-Based Capital requirement.
Total Capital = Core Capital + ALLL (statutory definition. FHFA has added some limits through regulation)
-Undercapitalized: Core Capital greater than the Minimum Leverage Capital requirement. Tier 1 Capital was included in the Capital rule, similar to C.C. (CET1 has regulatory adjustments and it includes AOCI)
-Significantly Undercapitalized: C.C. > Critical Capital level.
-Critically Undercapitalized: C.C. < Critical Capital level.

The Mnuchin Treasury recommended Congress to repeal the statutory definitons regarding capital, so The Group makes up its own rules, as we are witnessing.