Replies to post #771758 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

...is like giving someone directions to a restaurant in french when they only speak english.

The preferred language on this board seems to be 💩 emojis - something like Shitish.

The benefit is that British Shitish doesn't differ from American Shitish.

[TightCoil]

Avec Google Translator disponible, nous tous
nous parlons tous français :
Expliquer ce FAIT à des gens qui ne le comprennent pas, c'est comme indiquer à quelqu'un comment se rendre dans un restaurant en français alors qu'il ne parle que anglais. C'est un fait. La plupart des actionnaires ordinaires possèdent des biens communs parce qu’ils ne comprennent pas ce fait, et encore moins les autres faits entourant cette structure du capital avant la restructuration.

[Wise Man]

That means that FnF increase their Net Worth two times for the same Net Income in the quarter. More miracles or you are just selling smoke.

Retained earnings continues upwards along with the spspa liq pref.

The UST gets rich with SPS LP for free and, at the same time, FnF are recapitalized. A big lie.
The Wonderland scenario used by the attorney for Berkowitz, D.Thompson, to claim constitutional damages in court (Collins case dismissed last week. 5th Cir.), because the "for cause" removal restriction prevented it from happening sooner, firing Watt before.

What really happens is that the SPS LP increased for free carries an offset (reduction of Retained Earnings) that wipes out the Retained Earnings that you mention, as seen on day one with the $1B SPS issued for free.
FnF aren't recording these gifted SPS on the balance sheet ($111 billion) to evade recording the corresponding offset. So, only the first Retained Earnings shows up. This is Financial Statement fraud, for which we are requesting a compensation for Punitive Damages (8 Securities Law violations in total)

Thus, the adjusted Net Worth increase since September 2019 (and a one-time $3B in December 2017) is solely SPS LP.
FnF build SPS, not regulatory capital.
Then, they want to meet the capital requirements with these gifted SPS (Capital Reserve End Date)

There is no anti-dilution protection when the Warrant was issued with a right to purchase 79.9% of FnF at $0.00001 per common stock "on a fully diluted basis", which means that the UST would wait for the restructuring to exercise its Warrant. Thus, the JPS get diluted too after conversion to commons in your wishful-thinking scenario, because neither the SPS/JPS will get converted nor the Warrant will be exercised.

Talking about anti-dilution measures. I remind you that I filed a SEC complaint in 2012, denouncing that the BOD of Freddie Mac filled with GS alumnis, removed an anti-takeover measure by opting out of the Control Share Acquisition statute in the bylaws, that would have required two-thirds shareholder vote because it was done one day before the conservatorship.
This statute, if triggered, limits the vote to 20% regardless of the stake in the company.