Replies to post #524533 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

Yanks

While I am not aware of the numbers I agree with the below 99%

The GOV [paid $187.5 B in Treasury draws, initially, and more since with the DTA and buffer relief afforded the GSEs in Amendment 4.


Now Question

As the "negative" at F and F (to the extent it existed) was all a paper loss due to write down of bond holdings --- where did this 187.5B go ?

As I understand it from reading here there and everywhere - F and F were never cash poor - so this investment cash of 187B is 'extra' money that must have stayed inside F and F

Where is it and why is it not available as some sort of reserve on the balance sheet to be paid to Treasury to call the paper associated?

Summary
F and F never needed cash - operations paid for it
F and F receive a ton of Treasury cash (or IOU on the books)
Such cash or IOU would not have been used
Such cash or IOU is there at F and F
Why then is it any problem for F and F to use this money to call in the paper when so allowed?

(the only answer I can come up with - and that is as a NON accountant - is that somehow this investment in to F and F by Treasury went out as cash dividends to Treasury due to the NWS > 10% ---- (but as its an investment and not income earned my accounting does not understand it)

[Doc.007]

This is the same only Bla-Bla here going in circles !

To 1. The Warrants Agreements one for Common Stocks and one for Preferred Stocks are both also dated September 7, 2008 and that's the Fact !

To 2. The Gov did not pay for Preferred Stocks as Warrants ( As the Gov also did not pay for Any Kind of Stocks and did not need to pay. ) they just granted a Credit of $ 187 Bn based on the Collateral Warrants of Common & Preferred Stocks.
Otherwise please instead Bla-Bla Immediately Show The Payment Receipts of Common and Preferred Stocks where is specified the payment for these Stocks, which naturally not exists !

To 3. By the Investors Protection Act of SEC / FINRA, naturally also any Senior Preferred Stocks Issued as Outstanding have to be registered at "Schedule 13" but there is nothing, where the Stocks Issued as Outstanding In The Public Traded are registered by 4-K Forms.
There is no "Wild West" possible ! ! !

To 4. FM by NWS even Overpaid all Credits and therefore is not such Collateral Warrants thing of 2028 to exercise existing. This is Legally easy to understand !

To 6. Ask an Attorney specialized In Bankruptcy Rights for you to understand !

Etc. PERIOD

Resulting what You Provide Is Not a Reality Facts oriented Rebuttal, Sorry.

Happy FNMA Weekend

[bobstruths]

Yanks, I think your statement "6. The warrants have no relation to bankruptcy provision and likely would be worthless in any such case." is inaccurate in two ways. "Bankruptcy" is not discussed in HERA, but "Receivership" is. Bankruptcy gives a method to reorganize while Receivership does not. For FnF Receivership is the prescription for failure to meet obligations for a two month stretch (at least that's how I remember reading it). In a Receivership the warrants do have value to the tune of 80% of settlement value of the sales of all assets of FnF. These assets have substantial value, especially the portfolios and the intellectual property. It wouldn't take excessive losses to force Receivership, so market value of assets would be substantial and 80% would go to holders of the Warrants, thus assuring taxpayers would not have their interests wiped out, at the expense of equity shareholders by dilution.