Professor Epstein made the calculation in 2016 that’s 7 years ago. Since then the GSEs have sent more than enough to pay down the LP with money left over.
THE LAW HERA
The trustees of Fannie and Freddie can go to the market at any time to raise new capital, including new capital with lower dividend coupons, to buy back the Treasury’s senior preferred. Any loyal conservator of Fannie and Freddie would take advantage of this refinancing option to end the bailout arrangement, by paying off the senior preferred in full.
Cram Down People, they reference the
The Senior Preferred Stock Purchase Agreement Optional Pay Down of Liquidation Preference Following termination of the Commitment.
Quote: “The companies can't terminate the commitment anyway no matter what without Treasury's approval. The funding commitment doesn't have anything to do with the NWS. The funding commitment came into existence when the original SPSPAs were signed in 2008.” End of Quote. WRONG!
The Senior Preferred Stock Purchase Agreement is an illegal contract.
The LAW
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
Quote: “Page 2732
EXCEPTION.—Notwithstanding paragraph (1), the Director may permit a regulated entity, to the extent appropriate or applicable, to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition— ‘‘(A) is made in connection with the issuance of additional shares or obligations of the regulated entity in at least an equivalent amount; and ‘‘(B) will reduce the financial obligations of the regulated entity or otherwise improve the financial condition of the entity.’’.
NOTE: REPURCHASE, REDEEM, RETIRE...
WILL REDUCE THE FINANCIAL OBLIGATIONS OF THE REGULATED ENTITY.
News 
Market Data 
Discover 
