Fannie Mae-No Politics (FNMA)

[2latefortears]

Available capital under the enterprise regulatory capital framework excludes the stated value of the senior preferred stock ($120.8 billion) and other specified amounts in the table below. As a result of these exclusions, we had a deficit in available capital as of June 30, 2024, despite having a positive net worth under accounting principles generally accepted in the United States of America (“GAAP”).
We had a $229 billion shortfall of our available capital (deficit) to the adjusted total capital requirement (including buffers) of $184 billion under the standardized approach of the enterprise regulatory capital framework as of June 30, 2024. Our capital shortfall declined by $14 billion from December 31, 2023 to June 30, 2024, primarily as a result of the increase in our retained earnings during the first half of 2024 and the impact of the amendments to the enterprise regulatory capital framework that became effective in April 2024.

So you think new money (Wall Street, hedge funds, Warren Buffett, whoever)-is going to make up the $120 billion "shortfall" due to the SPSA, then R/S shares, then further dilute the new shareholders with another capital raise? That's never going to happen, which is why this hasn't been resolved in over 15 years. The gov't has boxed itself into a corner and is too stubborn to admit it's overreach. The Treasury is attempting to use the earning power of the GSE's to extract more money from the companies thru outside investors.
Which goes back to my original comment-the whole thing is a charade.