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  • Comment Detail

  • Date: 01/20/22
    First Name: Rodney
    Last Name: Fernandez
    Organization: N/A
    City: N/A
    State: N/A
    Attachment: N/A
    Number: RIN-2590-AB16

  • Comment

    01/20/2022

    Honorable Sandra L. Thompson
    FHFA Director

    Dear Madam Director,

    Fannie Mae / Freddie Mac

    The Senior Preferred Stock was not a perpetual equity investment in 2008 before the NWS took place. No Perpetual Dividend payment under the 2008 agreement when the companies were first taken over; All the money sent to the Treasury should be credited to the payoff of the Liquidation Preference and cancel the SPS. The SPS can be thought of as a kind of bond with a coupon amount of 10%, the SPS is not Common Stock.

    The Collins lawsuit only challenges the NWS; and only did so at the point in time when the FHFA and Treasury put in place the third amendment net worth sweep that intended to wipeout both the Common Shareholders and JPS Shareholders.

    Our friend Charles said it best,
    “You really have to admire these lawmakers, they come up with some great terminology. Net Worth Sweep, think about that for a minute. Sweeping all of your net worth.”

    Document from Treasury of The United States of America
    Variable Liquidation Preference Senior Preferred Stock, Series 2008-2
    OPTIONAL PAY DOWN OF LIQUIDATION PREFERENCE

    Page 3 Quote:

    “the company may pay down the Liquidation Preference of all outstanding shares of the Senior Preferred Stock pro rata, at any time, in whole or in part, out of the funds legally available therefor with such payment first being used to reduce any accrued and unpaid dividends previously added to the Liquidation Preference to Section 8 below.” End of Quote.

    Page 3 and 4 Quote:

    “If after termination of the Commitment the Company pays down the Liquidation Preference of each outstanding share of Senior Preferred Stock in full, such shares shall be deemed to have been redeemed as of the date of such payment, and the dividend that would otherwise be payable for the Dividend Period ending on the pay down date will be paid on such date. Following such deemed redemption, the shares of the Senior Preferred Stock shall no longer be deemed to be outstanding, and all rights of the holders thereof as holder of the Senior Preferred Stock shall cease, with respect to shares so redeemed, other than the right to receive the pay down amount (which shall include the final dividend for such shares). ANY SHARES OF THE SENOR PREFERRED STOCK WHICH SHALL HAVE BEEN SO REDEEMED, AFTER SUCH REDEMPTION, SHALL NO LONGER HAVE THE STATUS OF AUTHORIZED, ISSUED OR OUTSTANDING SHARES.” End of Quote

    Link: https://www.treasury.gov/press-center/press-releases/Documents/certificatefnm2.pdf

    Rodney T Fernandez

    Shareholder Fannie Mae, Freddie Mac