Item 8.01 Other Events.
Draw Under Senior Preferred Stock Purchase Agreement
As previously disclosed in Fannie Mae's (formally, the Federal National Mortgage
Association) Annual Report on Form 10-K for the year ended December 31, 2008,
Fannie Mae's net worth (defined as the amount by which our total assets exceed
our total liabilities, as reflected on our consolidated balance sheet prepared
in accordance with generally accepted accounting principles) had a deficit of
$15.2 billion as of December 31, 2008. The Director of the Federal Housing
Finance Agency submitted a request on February 25, 2009 to the U.S. Department
of the Treasury ("Treasury") for $15.2 billion on our behalf under the terms of
the Senior Preferred Stock Purchase Agreement between Fannie Mae and Treasury in
order to eliminate our net worth deficit as of December 31, 2008. In response to
this request, Treasury provided $15.2 billion to us on March 31, 2009. As a
result of this draw, the aggregate liquidation preference of the senior
preferred stock has increased from $1.0 billion to $16.2 billion.
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