Fannie Mae-No Politics (FNMA)

[loobeyondbm]

The bill is extremely positive to private shareholders. All earnings accrue from the BEGINNING of the conservatorship, i.e., we have repaid most, if not all, the senior preferred shares to Treasury.

(b) DISTRIBUTION OF EARNINGS.—Upon the expira-
17 tion of the period specified in subsection (a), the net earn-
18 ings of the enterprises from the beginning of the
19 conservatorships until the end of such period shall be dis-
20 tributed in the following order of priority:
21 (1) Repayment of the Senior Preferred Shares
22 owned by the Treasury.
23 (2) 10 percent rate of interest per year over the
24 term of the Senior Preferred Shares.

[Discussion Draft]
1 (3) Establishment of any reserve funds that the
2 Secretary of the Treasury determines are needed in
3 connection with the wind-down of the businesses of
4 the enterprises.
5 (4) Payment of any deferred contributions to
6 the Housing Trust Fund and Capital Magnet Fund
7 that have not been paid.
8 (5) Purchase of other outstanding preferred
9 shares.
10 (6) Purchase of outstanding common shares,
11 for which purpose warrants held by the Treasury
12 shall be treated as common stock.

The bill text:

http://democrats.financialservices.house.gov/FinancialSvcsDemMedia/file/003%20Maxine%20Waters%20Legislation/GSE%20Bill/WATERS_046_xml.pdf