Capital Distributions are restricted while in Conservatorship, according to 2008 HERA, where is set forth the regulation. The FHFA has repeated this several times, although referring to payments of claims, etc. But a dividend is also a Capital Distribution. It doesn't matter what is written in the SPSPA signed between the FHFA/US Treasury, because a contract doesn't supersede a law in force. Distributing dividend would go against Established Insolvency Principles and common sense. The companies need to increase capital and not decrease it, retaining earnings and not distributing it. The FHFA has allowed to distribute Capital only to one holder of Equity interest, the holder of Senior Preferred Stocks. Why is that? It turns out that distributing capital to the US Treasury both recapitalizes the enterprises (to be in a solvent condition) and pays off the obligations with the Treasury (to be in a sound condition), which is exactly the Conservator's Power: If you have