FNMFO - Earnings Accrue To Frannie Capital Structures Prime Equity Only Restructuring
Fannie Mae (FNMA) and Freddie Mac (FMCC) are two companies that are in conservatorship that the government began executing against a Trump Memorandum to end the conservatorship in March of 2019. Treasury's Craig Phillips subsequently put together a plan per the Memorandum to do just that. Per the plan, the companies stopped paying Treasury cash dividends and began retaining earnings in anticipation of an incoming equity restructuring. Behold ACG Analytics updated GSE Reform Timeline:
Investment Thesis: As part of getting Fannie and Freddie out of conservatorship, the equity needs