Fannie Mae-No Politics (FNMA)

[Wise Man]

MORE EVIDENCE of a Separate Account with FnF, FHLBanks-style.
When the word "separate" becomes an obsession.
Below, there is a statement from the FHFA explaining the announcement on August 5, 2011, when it solemnly declared that the FHLBanks "fulfilled their obligation to pay interests" (That was Funding Corp, not their Equity holders, the FHLBanks. So, the principal of the obligation RefCorp remains outstanding). Source.
Unaware that their Separate Account was for the reduction of the principal of the obligation RefCorp, not for the payment of interests. Source.
In that press release, the FHFA also unveiled a plan to build capital through Retained Earnings. Notice that it's dated just two weeKs after the effective date of the Final Rule that paved the way for the continuation of the recapitalization of FnF also in a Separate Account, once the SPS were fully repaid (phases 1 and 2, with the statute), enacting the July 20, 2011 CFR 1237.12. The difference is that, with FnF, the follow-on Recap plan was kept secret (no press release. You have to find it out yourself in the Final Rule)

This is how the FHFA explained the Recap plan of the FHLBanks, even making up the concept of "separate Retained Earnings account" within a Balance Sheet, when that's impossible. Everything is posted together and a separate Retained Earnings account doesn't exist, regardless that now, I bet that JPM has formed a task force to claim otherwise.
All forms part of the same Retained Earnings account and you can't even say that it's restricted, so that the shareholders don't take that money away through a special dividend. This isn't serious and the shareholders and the managements aren't in kindergarten.
As long as it shows up on the Balance Sheet, you can call it whatever you want "layman's terms".
The problem is in FnF, when "separate" means that it's outside the balance sheet, like the SPS LP increased for free and its offset absent from the balance sheet. That's financial statement fraud and stock price manipulation.
At some point, it'll have to be unwound, in order to comply with the statutory provisions: restriction on capital distributions, Rehab power, etc. and it'd be a case of Separate Account plan "in the best interests of the FHFA".

It shows an obsession. A global pandemic: the Bundesbank's External Position with the other european central banks, to hide the Claims/Liabilities in their flawed Payment Systems Target 2 (between central banks) and TIPS for the Local governments (TIPS known also as debt hidden in the drawers)