Fannie Mae-No Politics (FNMA)

[Rodney5]

$71,876 Theft (Seventy One Thousand Eight Hundred Seventy Six USD) wipes out $517.31 per share of common equity Fannie and Freddie.

Explained

Barron Quote: “ Nothing in HERA removes or supercedes the directors duties under the safety and soundness act. Federal law requires FNMA (whether by BOD or FHFA-C) to issue shares of common stock for "appropriate capital". Full stop.” End of Quote

Illegal Warrants Treasury Common Shares
4,603,542,119 Fannie Mae (cost $46,035)
2,584,067,576 Freddie Mac (cost $25,840)

0.00001 purchase price

7,187,609,695 total shares x 0.00001 = $71,876

$71,876 non-substantive price Treasury payment for 79.9 % of the entire market value of Fannie Mae and Freddie Mac. (will calculate market value soon).

WARRANT: Fannie Mae’s common stock outstanding 1,158,087,567 diluted by the warrants at 79.9 percent = 4,603,542,119 adds a total of 5,761,629,686 shares outstanding,

Freddie Mac’s common stock outstanding 650,059,553 diluted by the warrants at 79.9% = 2,584,067,576 adds a total of 3,234,127,129 shares outstanding.

The company gave away the Senior Preferred Stock for free along with the 79.9 % warrants to be purchased at a nominal price. The Treasury did not pay to the company a billon dollars.

Quote: “We did not receive any cash proceeds from Treasury at the time the senior preferred stock or the warrant was issued.” End of Quote
page 25 Form 10K December 31, 2008

link: https://www.sec.gov/Archives/edgar/data/310522/000095013309000487/w72716e10vk.htm#304;;;;;

Senior preferred 1,000
Page 143

Quote: “If the warrant is exercised, the stated value of the common stock issued will be reclassified as “Common stock” in our consolidated balance sheet. Because the warrant’s exercise price of $0.00001 per share is considered non-substantive (compared to the market price of our common stock), the warrant was evaluated based on its substance rather than its form.” End of Quote

Page F 10

https://www.sec.gov/Archives/edgar/data/310522/000095013309000487/w72716e10vk.htm#304;;;

Calculation of Fannie Mae and Freddie Mac’s Net Worth combined Earnings Power, with calculated percent amounts of possible theft by the United States Treasury Department from Common Shareholders. (link provided below explanation of ownership).

Fannie Mae $280.27 per share intrinsic value
$280.27 minus 79.9 % = $56.33

Treasury wipes out $223.93 per share of common equity.

Freddie Mac $367.19 per share intrinsic value
$367.19 minus 79.9% = $73.80

Treasury wipes out $293.38 per share of common equity.

Combined $517.31 per share Fannie and Freddie

Fannie Mae net worth $95 billion / 1,158,087,567 = $82.03 per share plus earnings power $198.24 = $280.27 per share

Freddie Mac net worth $59.5 billion / 650,059,533 = $91.53 per share plus earnings power $275.66 = $367.19

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Form 10K 2024
Fannie Mae Net Worth $95.0 billion
Fannie Mae common stock outstanding 1,158,087,567
Freddie Mac Net Worth $59.5 billion
Freddie Mac common stock outstanding 650,059,553
EARNINGS POWER OF THE BUSINESSES
Fannie Mae’s common stock outstanding 1,158,087,567
Net earnings $4.1 billion per quarter, $16.4 billion net per year.
$16.4 billion net income per year / 1,158,087,567 = $14.16 per share of earnings,

PE Ratio of 14 x $14.16 = $198.24 per share intrinsic value.

Freddie Mac common stock outstanding 650,059,553
Net earnings $3.2 billion per quarter, $12.8 billion net per year.

$12.8 billion net / 650,059,553 = $19.69 per share of earnings

PE Ratio of 14 x $19.69 = $275.66 per share intrinsic value.

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