The key: SPS LP increased for free UNCOVERS the prior scheme with the dividend payments (if you didn't see back then). The Incidental Power is an authority of FHFA to mislead and unwind every unlawful action restricted. But the way it's done, is set forth in the exceptions to the Restriction on Capital Distributions. We are legalizing the capital distribution that existed (SPS LP for free as compensation to UST in the absence of dividends), applying it towards the exceptions. In this case, the CFR 1237.12 exceptions 1, 2, 3 and 4 that mean the same: recapitalization, because this July 20, 2011 rule is a "supplemental" (c) of the one by statute, that was meant for the recapitalization too (if a capital distribution is restricted, the capital is retained by FnF: RETAINED EARNINGS ACCOUNT -CET1-)
Hence, the Common Equity necessarily is held in escrow for the CET1, as seen in the image:
The fact that this gifted SPS LP is already missing in the balance sheet (Financial Statement fraud), bodes well for the assertion that it was a joke (Incidental Power: "any action authorized by this section"), never intended to stay. They weren't deposited in a Separate Account.
The key: people would begin to wonder whether it happened the same with the prior capital distribution restricted, the dividend to UST, either the 10% and the NWS dividends. Here, through a Separate Account, first the cash dividend was applied towards the reduction of SPS (U.S. Code 4614(e)) and recapitalization too, as a SPS is repaid with cash not with cash dividend (a distribution of Earnings, and Retained Earnings is CET1). Then, this is why DeMarco enacted "the supplemental", CFR 1237.12, for the moment the SPS were fully paid off, for the follow-on plan of deception of using the capital distribution sent to UST towards the recapitalization.
The outcome is a CET1 of 2.8% of ATA in Fannie Mae and 2.9% in Freddie Mac, allowing them to redeem the JPS and then, resume the dividend payments, because they will have 60% and 97%, respectively, of their Prescribed Capital Buffers above the minimum required in the ERCF (Tier 1 Capital > 2.5% of ATA), above the 25% minimum threshold.
When are you going to stop playing the fool with all your aliases?
And where do you think those 100's of billions will come from? a unicorn's butt?
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