Fannie Mae (FNMA)

[Wise Man]

I've posted (G) LOSSES. Can't you read?

neither entity met any of the twelve conditions for conservatorship

About the likelihood to incur future losses.
And those losses existed along with the need of capital infusion thanks to the taxpayer's assistance, as per the Charter Act (to finance their operations as a last resort, expressly written in the section Purposes, just before it's laid out their Public Mission that makes them take on credit risk and not properly compensated)

Obviously if most of them were fabricated losses, the likelihood was certain in 2008.
The losses and charges that made them need capital (SPS) to offset the negative Net Worth (Watch the signature image), have been explained a thousand times. The latest, 6 days ago.
I'll post them again just for you:
-The 10% dividend to Treasury.
-The DTA valuation allowance.
-Outsized provisions for loan losses caused by the prior Incur Loss accounting standard and the Obama's programs, as FnF were compelled to set aside a reserve equal to the concession granted to borrowers, not the actual expected loss (it was changed in January 2020 for the CECL accounting standard). An amended in 2011 ballooned the borrowers elegible, as now, it was up to the management to decide if one borrower current on its mortgage payments was at risk of default.
-The initial $1B SPS LP issued for free, it reduce the Additional Paid-In Capital account (Core Capital) in the same amount (currently in place with the SPS LP increased for free every quarter, but the managements commit financial statement fraud by not posting both operations on the balance sheets)
-The mispricing of the PLMBSs that affects the AOCI line item in Equity (No "AOCI opt-out election" through regulation like the small banks, or, directly, break the rules in the large banks with the Held-to-maturity Portfolio, thanks to a Federal Reserve's alibi in a Balance Sheet Schedule on how to fill out a Balance Sheet, because Held-to-maturity is NEVER an option in investments in debt securities. Only the Fed does it in its own battered balance sheet). The trough date in the market price of the PLMBSs occurred 3 months into Conservatorship), as seen in this image:

Obviously, other losses were actual credit losses.

I remind you that playing the fool is an aggravating circumstance when assessing Punitive damages.
Please, behave.

You are publishing lies!