Fannie Mae-No Politics (FNMA)

[Donotunderstand]

Is it booked as DEBT or Senior PFD equity ? The GOV has always called this equity - an investment not a loan or debt

I do not know the accounting. But, as I understand it - Treasury can "force push this paper" on F and F making F and F have to pay the GOV back their investment (anyone?? - this is not typical Senior Preferred - it is defined in various unique documents)

As such the investment and added LP dollar IOUS - hang over F and F as a probable (at some point eventual) use of cash (when GOV demands to be called out of the Senior paper - traded if you will - cash for extinguishing the paper)

With this "cash use overhand" ---- a NET NET count of capital at F and F takes the (supposed or declared) reserves and subtracts the LP --- which takes us to negative land

Kill that potential for GOV to ask to be "bought out" --- kill the expected pay back to GOV to extinguish the Sr Preferred Pape --- and THEN the capital that F and F have ---- is golden and real for the first time (all the original is gone and all the IOUS in the LP disappear but F and F keep their cash)

Anyone --- show me the correct way to say this - which in its message I believe is accurate