Fannie Mae-No Politics (FNMA)

[Rodney5]

CAPITAL REQUIREMENT

Fannie short $12.9 billion (tier 1 capital 2.5%)
Freddie short $23 billion (tier 1 capital 2.5%)
( link provided to calculation ).

The 2.5% minimum leverage capital required with the companies earning power at $30 billion plus net income per year, Fannie Mae will meet the number in less than one year and Freddie Mac less than two. And at this point in time can begin to exit conservatorship. (both companies could exit conservatorship NOW if the treasury would return the stolen money).

Under these conditions absolutely NO REASON for a capital raise by a re-IPO.and NO REASON for a government explicit guarantee or a guarantee at a price of 10% on capital. With the amount of earnings power of the businesses management can easily turn to the open market for less expensive capital to fund the risk-weighted assets. (line of credit).

Fannie Mae and Freddie Mac, the minimum leverage capital requirement is to maintain tier 1 capital equal to at least 2.5% of adjusted total assets (minimum), and adjusted total capital equal to at least 4.5%, 6.0%, and 8.0% respectively, of risk-weighted assets.

Fannie and Freddie are not banks and should not be required to hold bank like capital. The more risk a bank has, the more capital it needs on hand.

I’m asking for help identifying and calculating the risk-weighted… Risk-weighted assets are used to determine the minimum amount of capital a bank must hold in relation to the risk profile of its lending activities and other assets.

Fannie and Freddie adjusted total capital equal to at least 4.5%, 6.0%, and 8.0% respectively, of risk-weighted assets.

First, Treasury and FHFA must agree to cancel the net worth sweep (NWS increase dollar for dollar on retained earnings) eliminate Treasury’s liquidation preference, and cancellation of the Senior Preferred. Fannie and Freddie already have repaid their senior preferred stock, to make the companies’ repay their indebtedness to Treasury twice would be fraudulent.

Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175927399