Fannie Mae Preferred S (FNMAS)

[thewhale]

Once the SPSPA ends, then conservatorship can end, by Agreement. The FHFA and Watt can't just end c-ship on their own.

For the SPSPA to end, Treasury's funding commitment needs to end. For the funding commitment to end, dividends paying off draws and the remaining liquidation preference needs to be paid ($1B), among some other things.

Fannie has nearly paid off the liquidation pref, their draw, down to the initial $1B value and Treasury has stated in their 2013 EOY report that they anticipate no further draws through the life of the Agreement. There are some other covenants, but basically, as everyone knows, it comes down to politics now.