Replies to post #605128 on Fannie Mae (FNMA)

[kthomp19]

that’s GOVT Vodoo Econ Numbers !

Call it whatever you want, FnF having negative $170B of core capital at the end of 2019 is a fact. Saying otherwise is a false narrative.

Not sure why you don’t understand that the UST has way over 130B dollars
that belong to the GSE,s and once the courts grow a pair and force the
return of it that’s more than enough Capital for recap and release.

How can I "understand" something that is false? Treasury returning $125B (or $130B) does not recap FnF while the senior prefs exist. Core capital would still be negative!

It would take the seniors being converted to a form of equity that counts towards core capital (commons and non-cumulative prefs) to finish the recap. Treasury is never going to both send $125B and cancel the seniors, it will be one or the other. Each of the two results in significant dilution to the commons.

Give it some time and hopefully the courts will do their jobs.

We are years away from a final court ruling that would force Treasury to send this $125B. Calabria and Mnuchin don't have that kind of time.

You appear to be a numbers guy take look at FNMA 4th Qtr Earnings. With
those earnings alone they could have purchased back every single common share
on the open market. That’s all of the Public Shares avail to buy !

So I don’t want to hear any stories that it can’t be done.

FnF not being able to buy back their own shares is a fact, not a story. I proved it in this post.

And how can you try to make a point by citing FnF's earnings, which appear in SEC filings, while ignoring the same SEC filings that say their core capital is negative $170B? Pick a lane.