(*)"Common Equity held in escrow" in compliance with the CFR 1237.12 too (exception to the restriction on capital distribution: the recapitalization. Though this time doesn't occur in a Separate Account like with the "fake dividend")
This 3rd phase of the Separate Account plan that includes Financial Statement fraud (Gifted SPS and its offset, absent from the Balance Sheet), was initiated by Trump/Mnuchin - Mel Watt on December 2017 with a one-time $3B SPS LP increased for free and $3B "Applicable Capital Reserve" authorized (coinciding with a minimum Net Worth), unaware that always the adjusted Capital Reserve is $0 once the Financial Statement fraud mentioned, is fixed, and what is increasing is the Net Worth with SPS.
This 4th PA amendment of December 2017 came out when they read in a tweet that the SPSPA would be declared void as of 2017, since the 3rd PA amendment established $0 Net Worth target in 2018 ($600mll reduction per year), when the Charter Act requires the management to have always a minimum Net Worth, without specifying more.
Yes, the FHFA and the UST reacting to this tweet by a shareholder, evidence that the SPSPA is just a fact sheet full of patches for deception (FHFA-UST supplanting the Congress with the invalid "Capital Reserve": Now up, now down $600mll per year. Now, up we go again.... As if it was even possible).
The real thing (in accordance with the law) occurs in a separate account.
The 5th PA amendment on September 2019, came out a few weeks after judge Willet's ruling, complaining about "that kind of liquidation goes beyond the conservator's powers". The dividend payment was suspended, but switched for SPS LP increased for free every quarter that is the same Common Equity Sweep as before, until the "Capital Reserve" fetched $18B and $25B or so (adjusted CR is always $0, due to the offset missing).
The only thing that increases in the Net Worth is the SPS, not the common equity, but, necessarily, it's held in escrow, because the recapitalization is about regulatory capital (CET1, Core capital, Total Capital, tier 1 capital).
Then, the 6th PA amendment, on January 14, 2021, with the infamous "Capital Reserve End Date", when the CR meets the capital requirements.
