Replies to post #759389 on Fannie Mae-No Politics (FNMA)

[Freddie bagholder]

Yeah market knows sandra is POS

[FOFreddie]

You are right Glenn - UST will be required to restructure "their" equity. The SPSA will have to be written down and it is the only fair remedy for the Unconstitutional acts of the UST.

[Wise Man]

The Equity restructuring already happened during Conservatorship.
The reorganization or rehabilitation of enterprises (preserve the assets, fix their operations, build capital, adequate controls, professional personnel, etc) to put them on the correct path or, as stated in the law, put FnF in a sound and solvent condition, with a mandatory release Undercapitalized conveniently stripped out by Calabria when he amended the FHEFSSA (besides the Charter Act) with the HERA of 2008.

The release by law is now only determined by the 2011 "recommendations on ending the Conservatorship", as explained yesterday, here. The grounds for a Housing Finance System revamp: fully private system that needs stringent capital requirements (no UST backup anymore)
The soundness and solvency in a financial company is measured with the Equity. That is, capital levels and ability to meet the debt obligations on their own, respectively. It's not "the return to profitability despite that later the profits are sent to Treasury's coffers" and "the Treasury's funding commitment", respectively, as the courts have stated. The same court that claimed that FnF "likely should not return to business as usual", unaware that with the guarantee fee hikes, the capital buildup and with the bank-like capital requirements (The Federal Reserve and the FHFA adopted the Basel Framework for Capital requirements), FnF are already operating as fully private enterprises and thus, the Charter can now be revoked (There you are, no "business as usual" anymore). The resumption of independent operations with the release should have happened long time ago.

Mandatory release Undercapitalized means that FnF don't need to build full capital requirement for the release, like Freddie Mac that met 100% of its Prescribed Capital Buffers (February 16, 2021 Capital Rule -ERCF-) at the end of 2022 with the adjusted figures.
BOTTOM LINE
Your "Equity restructuring" already happened: nowadays the adjusted Equity is $252 billion worth of Core Capital, whereas with the corrupt litigation the Core Capital would remain as is: adjusted $-193 billion, as they don't recover even $1 of C.C. ($29B cash refund, $193B SPS "repaid", nothing about the $103B gifted SPS, ...), a remedy not backed up by any statutory provision (unlike the Separate Account plan). Besides the same $-216B in their Retained Earnings accounts, an account that is meant to absorb future losses and where the dividends are paid out.
The world can't wait for you to understand that capital distributions are restricted when a financial company is undercapitalized, and that refers to dividends and today's compensation to UST with SPS.

Also, that a dividend is a distribution of earnings and there are no funds available for distribution out of a Retained Earnings account with deficit all along.
Your investment case (Equity restructuing so that JPS match the SPS's haircut. GS's Mnuchin said so) is based on trickery: the laws and financial concepts are deprived of their meaning with cover-ups and lies.
The courts have no say on the conservatorships, under the U.S.C. 4617 (f). Primarily because they lack understanding of financial concepts.

(f)Limitation on court action.
...No court may take any action to restrain or affect the exercise of powers or functions of the Agency as a conservator.

What's next? A token is not a security? Already happened?
With a security (a certificate with monetary value), we come up with a stock valuation (NPV of a legal claim on future cash flows). Then, the "unbacked crypto" is declared a scam (the Fed and Bill Ackman are acting as de facto recruiters). A token needs to be backed up 100% by a legal tender currency.
It shows how investors use the courts to tailor rulings beneficial to their investment cases, in the absence of Federal Agencies that refuse to do their job properly.
They just need similar slogans throughout the social media: "the SEC chairman and senator Warren continue to be tough on crypto", or in Fanniegate: "FnF continue to build capital" (Bill Ackman and his subordinate Glen Bradford). No regulatory capital is built with the gifted SPS in the same amount as the Net Worth increase in the quarter.
Also, the notion that the capital requirements are met with the Net Worth, instead of Total Capital, Core Capital, CET1, Tier 1 Capital. All of them deep in the read in the tables ERCF. They just have to call the Net Worth or Equity "Capital Reserve", as seen in the testimony of the Goldman Sachs' alumini, Sandra Thompson, in Congress in 2022:

[Acme Investments]

You do realize 100 percent is only 90 cents right?? A simple look at a five year chart would help you understand!! The other issues you continue to bring up is so far down the line 5 years later you will still be posting about it!! First things first!! Watch for this double up!! I'm going to remind you like a toddler promised ice cream!! Lol!!