Fannie Mae-No Politics (FNMA)

[Rodney5]

It’s real simple the company gives us the numbers.

Fannie is not negative $38 billion, but negative $243 billion.

Short fall of $243 billion of available capital (deficit) to the total capital requirement. Page 105 AND the deficit continues to grow when Fannie’s book of business increases because the capital requirement grows AND the Treasury continues with the Net Worth Sweep by the increase of the Liquidation Preference dollar for dollar with every dollar of retained earning.

https://www.fanniemae.com/media/51196/display

This wipes out both Common and JPS, not sure how no name thinks the JPS somehow has a saviour over the Common Shareholders. I believe if the crime syndicate wipes out the Common the JPS are gone too.

BUT THE TRUTH IS THE ATTORNEYS DID NOT APPLY THE LAW !

It does not matter if the SPS is called equity or not. READ THE LAW

It’s bad faith and unfair dealing when the Regulator is authorized to pay down the Senior Preferred Stock and sent the Net Worth without the pay down option. The FHFA Director doesn’t need the Treasury approval to pay down the Senior Preferred Stock the Director has the authority from Congress written in HERA:

HOUSING AND ECONOMIC RECOVERY ACT OF 2008

RESTRICTION ON CAPITAL DISTRIBUTIONS.— page 2731
‘‘(1) IN GENERAL.—A regulated entity shall make no capital distribution if, after making the distribution, the regulated entity would be undercapitalized. The exception.

Quote: “Page 2732

EXCEPTION.—Notwithstanding paragraph (1), the Director may permit a regulated entity, to the extent appropriate or applicable, to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition— ‘‘(A) is made in connection with the issuance of additional shares or obligations of the regulated entity in at least an equivalent amount; and ‘‘(B) will reduce the financial obligations of the regulated entity or otherwise improve the financial condition of the entity.’’.

NOTE: REPURCHASE, REDEEM, RETIRE...

WILL REDUCE THE FINANCIAL OBLIGATIONS OF THE REGULATED ENTITY.

Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf

In essence allows the trustees of Fannie and Freddie to go to the market at any time to raise new capital, including new capital with lower dividend coupons, to buy back the Treasury’s senior preferred. Any loyal conservator of Fannie and Freddie would take advantage of this refinancing option to end the bailout arrangement, by paying off the senior preferred in full. The Treasury did not take a Perpetual Equity Investment in the enterprises, the Treasury stated a temporary investment period!

The calculation of the pay down of the liquidation preference of the Senior Preferred Stock, apply the law written in the HERA legislation passed by Congress.

Link to the paid in full calculation: calculated courtesy of Mr Fisher.

https://drive.google.com/file/d/15978NWfDcTtuClMBnwgWFmoPnwK94vWn/view

The liquidation preference has been paid and the Senior Preferred Stock should be canceled.

The law actually exists! FHFA and its Director are executive branch entities. They cannot make changes to federal laws. Only Congress can change the law.

Therefore, the U.S. Congress did not give DeMarco the power to take all the future profits of their wards in conservatorship into perpetuity, thus Nationalizing the GSES, based on an Incidental Power in HERA: The Net Worth Sweep.

The U.S. Congress would have given the FHFA more explicit instructions to do so than merely drafting in the HERA to do whatever it feels is in its best interests. DeMarco, this non-elected bureaucrat, has been allowed to steal the companies for the Treasury.