Is this formula correct? The number 7.224B is "Balance as of Dec.31, 2012" as shown at the end of page 18 of the "Fourth Quarter and Full Year 2012 Results" report. This 7.224B is, in turn, from the formula of 18.839B ("Total comprehensive income") - 11.608B ("Senior preferred stock dividends".[the same page]. Since 4.2B is the money paid to Treasury March 31, 2013, I guess, the 7.224B of the "Balance as of Dec.31, 2012" should be the same as the so-called net worth of the immediately preceding quarter.
The FNMA fourth quarter earnings report is a bit mind-boggling. It's all because the Fed bail-out funds are not a pure and simple financial loan like the 10-B loan from Warren Buffett to Golden Sach a couple years ago, and are further complicated by the August 2012 changed terms. Some of our fellow investers have made admirable efforts and done fairly thorough study of the existing documents to an extent of almost exceeding the depth of what some journalists have gone. The current Fed terms on FnF ARE rigid and formidable, but the very existence of the "profitability" of the two GSEs has created a new atmosphere, which may gradually induce our leaders and law- makers to have a second thought. Nobody would say the change is certain and it's just this little lingering element of uncertainty that has kept the shares of the two GSEs from soaring to the range of 5 to 10 dollars at least.