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  • Comment Detail

  • Date: 10/26/21
    First Name: Kenneth
    Last Name: Powers
    Organization: Pen 15 Holdings
    City: N/A
    State: N/A
    Attachment: N/A
    Number: RIN-2590-AB17

  • Comment

    While the proposed capital rule is a step in the right direction, it has little to no value until adjustments are made to the SPSPA with Treasury that requires the liquidation preference to be increased at the same amount as the earnings retained. The agreement should be restructured as a loan (either backward or forward looking), so that the enterprises' liabilities can be decreased as payments are/were made. Currently their liabilities and capital both increase at the same rate, which does little if nothing to improve their safety and soundness. As a result of the existing SPSPA with Treasury, any capital rule has little to no value.