Replies to post #28886 on Fannie Mae-No Politics (FNMA)

[~ Blue ~]

FNMA has no debt to the Treasury and taxpayers. Because the US treasury invested money and got senior preferred shares (not junior preferred shares, FNMAS, AT THIS STAGE THERE IS NO DIFFERENCES BETWEEN JUNIOR PREFERRED SHARES AND COMMON SHARES. BECAUSE JUNIOR PREFERRED SHARES ARE NOT GETTING ANY DIVIDEND THE ONLY DIFFERENCES JUNIOR PREFERRED SHARE PRICE 7 TIMES HIGHER THAN FNMA COMMON SHARES.) Also they dictate to FNMA to pay huge amount of dividend. They received 95 billion dollars dividend so far because of 117.1 billion dollars investment within 4 years. Nice return, any hedge fund didn't make that amount of return within 4 years. Now if the treasury wants they can sell their senior preferred shares and walk away with huge amount of return. Mr. Market is ready to buy them or the company can buy back those shares as well because FNMA CEO said they company will be profitable next few years because of high quality mortgage securities.

[Strykerd]

Truth, that is currently scheduled for 2018

Under the amended SPSPAs, the quarterly dividend payment will change from a 10.0 percent per annum fixed rate dividend to an amount equivalent to the GSE’s positive net worth above a capital reserve amount. The capital reserve amount is initially set at $3.0 billion for calendar year 2013, and declines by $600 million at the beginning of each calendar year thereafter until it reaches zero by calendar year 2018.

[SSDBase]

No closer.

All profits went to the Treasury as a dividend. None of it redeemed any of the Treasury's preferred.

Profits don't matter at this stage. All hopes for the common long term is in legislation. Nothing else matters.