Fannie Mae-No Politics (FNMA)

[Wise Man]

Kphut19, a financial illiterate repeating the same lies over and over again.
The SPS LP increased for free is

off balance sheet

Primarily, it's false because they must be posted on the balance sheet.
Secondly, even if that were the case, FnF publish their financial statements on a consolidated basis. For instance, this is why their $7 Trillion worth of UMBSs held in MBS Trusts (Special Purpose Entities, SPEs), is shown on the Balance Sheets.

He wants to conceal that they carry an offset, with the reduction of Core Capital (Retained Earnings account in this case), like occurred with the initial $1B SPS LP issued for free.


A Financial Statement fraud.
And thus, FnF aren't building regulatory capital (Retained Earnings account, Core Capital) but SPS (Capital Stock) in their Net Worth.