complete the process of rebuilding their capital and restoring themselves as the shareholder- owned, mortgage-finance powerhouses Americans, of all walks of life, have come to depend
on and trust: 1) Relist the common shares of Fannie and Freddie on the New York Stock Exchange (the “NYSE”).
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2) Redeem the entire balance of each company’s outstanding non-cumulative preferred stock at full par value, and issue new non-cumulative 3.25-percent preferred shares in approximately the same amount on the NYSE. For purposes of this analysis, the financial statements will be unaffected by these redemption and issuance processes. 3) Issue additional common stock for each company (65 million shares for Fannie at $175.00/share, and 145 million shares for Freddie at $150.00/share), raising core capital by $33.1 billion. 4) Reissue the entire balance of treasury stock in each company (151 million shares for Fannie at $175.00/share, and 76 million shares for Freddie at $150.00/share), eliminating the negative treasury stock balance of $11.3 billion and increasing core capital by a total of $37.8 billion. With the issuance of more common shares and the reissuance of each company’s treasury stock, Fannie Mae and Freddie Mac will have exceeded their statutory minimum capital requirements by $5.7 billion as of December 31, 2022; they would, thus, be free to finally and completely exit their respective conservatorships, and 5) Resume the preferred and common stock dividends beginning the first quarter of fiscal 2023. The Third and Final Step – What We Must Do At no time in our nation’s history has there ever been such a blatant, mean-spirited disregard for our country’s constitutional protections and guarantees (or for just basic fairness and decency) by the very individuals and institutions we have entrusted to defend and uphold those constitutional rights and American customs. What we have collectively witnessed over the last decade with the conservatorships of Fannie Mae and Freddie Mac is nothing short of a national tragedy, and a global stain on American exceptionalism. So, what we must do for ourselves, for future generations of Americans, and for our nation as a whole, is to never forget that this happened, and how it happened, and to ensure that it never happens again. Because if we don’t, we and the world will forever lose Abraham Lincoln’s “. . . last best hope of earth.”