Fannie Mae-No Politics (FNMA)

[Donotunderstand]

interesting
I am not a lawyer - and also have not read every sentence of all documents OR other situations that may have some precedent value

I can see why the LP can be called a charge

At same time ---- without direct knowledge of the "wording" - I have viewed the LP as the "counter"

Regardless of amount invested by the GOV in dollars - or gained in dividends - the # of shares and the value per share of the SP stock does not change (there is no market and it was not designed to change up or down). Thus there has to be a way to count up - to count - the amount invested - thus the LP takes on that role . The below is cut and paste and followed by a serious question

If FNMA takes treasuries money, then in consideration of that money, FNMA must give treasury warrants for common stock, and must attach the money borrowed plus 10% (later NWS) to each share of the Senior Preferred.

My question ---- in the context that what I did read over the years uses the words stock - dividends - investment ---- and not loan ------ Why do you say the "money is borrowed "? And if you believe it is borrowed is the 10% then interest? Summary point :: As you have all the language - does the paperwork - agreements - covenants - whatever -- as written by GOV --- every use the words loan or borrowed or interest ? My impression has always been the words would be investment - equity - and dividends ---- which makes a huge difference. The GOV did not call this senior debt paper but LP associated equity (and yes there is clear absolute discussion of FEES - but those IMO are neither interest nor dividends but fees) Second question --- Even if it requires a stretch --- do you think the paperwork would flat out allow FNMA and or Freddie to call in the SR Preferred Paper via issuing warrants (the original or some more ?) I am always looking for more ways the GOV can wipe out the full LP counted SP obligation (and believe GOV (Treasury) can do so now already)