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  "documentTitle": "Fannie Mae & Freddie Mac (FNMA / FMCC)",
  "authorId": "01_Pershing_Square",
  "authorName": "Pershing Square",
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  "notes": "The slide highlights the financial structure of the 2008 GSE bailout and questions the Treasury's dividend collection strategy.",
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      "text": "It is unclear why Treasury did not allow the preferred stock to pay 12% PIK dividends when the GSEs were unable to pay cash dividends",
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      "text": "Terms of Senior Preferred Stock: $1bn initial liquidation preference; Warrants for 79.9% of common stock; Cumulative dividends at 10% cash rate or 12% paid-in-kind (PIK) rate",
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      "text": "History Prior to the Net Worth Sweep: The GSEs were unable to pay 10% cash dividends from 2008 to 2011 and used proceeds from additional Treasury preferred stock investments to pay dividends; It is unclear why Treasury did not allow the preferred stock to pay 12% PIK dividends when the GSEs were unable to pay cash dividends; In 2012, Fannie and Freddie became profitable enough to pay the 10% cash dividend on Treasury’s preferred stock",
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      "text": "On Sept. 7, 2008, Treasury committed to invest up to $100bn of senior preferred stock in each of the GSEs through the Preferred Stock Purchase Agreements (\"PSPAs\"). In 2009, Treasury raised its commitment to $200bn each",
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      "text": "Treasury Senior Preferred Stock Investment",
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