Replies to post #758847 on Fannie Mae-No Politics (FNMA)

[Wise Man]

The capital shortfall is $400B, not $100B
It's time to expel Robert from Yahoo bd from this message board, accused of lying.
He claims that there is only $100B capital shortfall over the 2.5% Minimum Leverage Capital requirement.

The GSE'S still need about another $100B in Capital to get to a 2.5% Capital Ratio, which could take another 5-10 years.

The official number posted by FnF in their Earning reports filed with the SEC, is $297B capital shortfall together.
Fannie Mae: $171B core capital shortfall.

Freddie Mac: $126B

Then, we have to adjust this amount for the $103B SPS increased for free since December 2017 that are missing on the balance sheets, along with their offset with $103B reduction of the Retained Earnings account (core capital)
Totalling, a whopping $400B core capital shortfall over Minimum Leverage Capital requirement, that marks the Undercapitalized threshold.
As crazy as it gets. Evidence in itself of a Separate Account plan.
There are many people on this board claiming that the $207B capital requirement mentioned, is met with their Net Worth($103B), which the FHFA-UST gang calls "Capital Reserve", instead of core capital, as mandated by Basel rules and the FHEFSSA's definition of the Capital Classification: Undercapitalized: when the core capital meets the Minimum (Leverage) Capital requirement.

The same people concealing the FHEFSSA when they repeat that FnF are regulated by HERA, instead of FHEFSSA as amended by HERA. They don't want you to see the definitions of the financial concepts.
Let alone that we are talking about a Treasury Department that, when headed by Goldman Sachs' Mnuchin, recommended in the 2019 Treasury Housing Reform, to erase these statutory definitions that bother when they want to apply their own rules.

The core capital is calculated as follows:

[jog49]

"Very few people on the Hill seem to understand exactly how Fannie Mae and Freddie Mac work. The GSE'S still need about another $100B in Capital to get to a 2.5% Capital Ratio, which could take another 5-10 years."

Yet, if the money absconded from Fannie and Freddie (illegally, I might add) was returned, both would be INSTANTLY capitalized beyond so-called requirements.
It hasn't happened because the U.S. Government is a criminal enterprise. There's no other assumption to be made.