Fannie Mae-No Politics (FNMA)

[Wise Man]

A $500B rip-off of the shareholders by the crooked litigants and others that write in formal documents, is underway, based solely on the financial concept “capital”, that means:
1- Capital: cash.
2- Capital: regulatory and statutory capital.
3- Capital: Equity or Net Worth (Balance Sheet).
And the capital requirements are met with #2, not with #3. Each threshold in #2 has a capital classification: Adequately Capitalized, etc.
In a financial company, we never say #1 to not create confusion.

FnF have sent to the UST $301B in cash dividends. A dividend is a distribution of Earnings, that is, it's paid out from Earnings, and the Retained Earnings account is CET1 and Core Capital. This is why a dividend is a capital distribution.
The annual earnings and losses on the Income Statements, are later credited to and debited from the Accumulated Retained Earnings account (Balance Sheet). Thus, you need to build up the RE acct (currently adjusted Accumulated Deficit $-216B. The losses in early Conservatorship have been accumulated and then, the "dividends" have prevented FnF from reversing them and build capital requirements. Crazy, right? Evidence in itself of another side in this deal).

A cash dividend reduces both cash (Asset) and Retained Earnings account (Equity).
A dividend isn't an interest payment (expenses).
Then, you can’t ask for SPS “repaid” and a cash refund of $29B, pretending that FnF are Mutual Funds, because that translates into $0 core capital recovered.
The SPS are paid off with simple cash (Asset) and the Earnings aren’t affected, recorded as Accumulated Retained Earnings account, just like happens in any amount of Earnings that the company wants to redeploy in investments. In our case, the first thing that FnF chose was to pay off the taxpayer's assistance. Thus, you have to request a posting in the Retained Earnings account for the $191B of SPS principal and $29B for the overpayment ($220B), in addition to the $29B cash.
None of this has been explained as remedy sought in court.
Playing the fool in the role of financial illiterates is the bread and butter during conservatorships. Let alone their paid shills on social media, with navycmdr: “Cash Equity”.
The thing is that, in a conservatorship for the financial rehabilitation (Put FnF in a sound and solvent condition (Balance Sheet)), measured with the Capital ratios, the capital distributions are restricted, like dividends, today’s SPS increased for free and the Lamberth rebate.
The cover-up of the statutory Restriction on Capital Distributions, supplemented in July 20, 2011, with the CFR1237.12, has been the center of their con operation in the U.S. courts.
The cover-up of a material fact is a felony of Making False Statements.
The key to understand the Separate Account plan, because, as the capital distributions went through despite being restricted, they were assessments applied towards the exceptions in the same rules, so they are now lawful (reduce the SPS and recapitalization outside their Balance Sheets with the supplemental), and understanding that lying is authorized in the FHFA-C’s Incidental Power, as long as the Power is upheld.
And we have proof of this plan about playing the fool! Attorney for Berkowitz and other 4 cases (Rop, , Robinson, Collins), David Thompson, in a conference call hosted by Pagliara.
With respect to capitalization, I am not a regulatory lawyer. I am a litigator....That's being watched by a number of sophisticated lawyers...

22:30 mark:https://web.archive.org/web/20200619174039/https://investorsunite.org/wp-content/uploads/2020/01/1-24-IU-Teleconference-Audio.mp3
BOTTOM LINE
This is why unwinding the Separate Account plan, which, in the end, it’s a normal Conservatorship carried out secretly, consists in determining that the SPS had been paid off through the end of 2013 in Freddie Mac (signature image below), and end of 2014 in Fannie Mae. It isn’t asking for SPS cancelled or debt forgiveness with “SPS, written off”.
What type of bailout mechanism is to swell the SPS and, 16 years later, ask for debt forgiveness?
Let alone a swap SPS for Cs, for the assault on the ownership, and requiring that the JPS have the same haircut of the conversion too, to boost the CET1, as stated by the plaintiff Bryndon Fisher two days ago with one of his aliases in this board. No, you have prevented FnF from recording this CET1 in the first place.
The scammers' take translate into massive dilution of the shareholders in the EPS and percentage of ownership in FnF (warrant, swap SPS/JPS for Cs, stock offerings to meet the capital requirements). The lower the common stock price, the more Cs they get for their Preferred Stocks, if it wasn't because, with only $132B, not only a haircut is necessary in the SPS ($325B SPS outstanding), but the JPS are wiped out (Fair Value $9 in $FNMAS, with 17 years left to resume the dividend payments with 25% of the Prescribed Capita Buffer. But, as every year there are 17 years left with the ongoing Common Equity Sweep, today's market price of $4.5 can be its fair value). This isn't a case of Debt restructuring, where the debt trades at a fair value close to face value. A security recorded in Equity has other stock valuation, regardless that this security is a fixed-income security too.
That is, Fanniegate is a case of stock price manipulation.

Unwinding the Separate Account plan, means that $433B Retained Earnings account are missing on the Balance Sheets: $191B worth SPS have been paid down, $110B in dividends were restricted and currently $131B of Retained Earnings that do appear, but because there is Financial Statement fraud, so $131B is CET1 held in escrow too.
So many years playing the fool that now they have to wear diapers.
They are required to pay us $4.8B in punitive damages.