what about item 35? it says to either redeem them or retire by paying them. happens all the time. pay $1500/share. in any case it is all crap and means nothing
35. The Treasury’s senior preferred shares present a unique obstacle to common-stock investors because of the nature of the agreements between the GSEs and the Treasury. In particular, the dividends that the GSEs owe to the Treasury on the amount of senior preferred shares outstanding are subject to change. Originally, the Treasury was supposed to receive a fixed annual dividend equal to 10 percent of its outstanding share balance (12 percent if the dividend was paid in kind, with additional preferred shares, rather than in cash). In August 2012, the payment agreement was amended to require Fannie Mae and Freddie Mac to pay the Treasury essentially all of their profits (referred to as an income sweep). The income sweep was suspended in September 2019 to allow the GSEs to accumulate capital as a first step in their recapitalization. Because of that past variability in the dividends on the Treasury’s senior preferred shares, potential stockholders in the GSEs would probably require that those shares be redeemed or retired as part of any common-stock offering.
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