Fannie Mae (FNMA)

[obiterdictum]

In his complaints, Pagliara seeks to compel inspection of Fannie Mae's and Freddie Mac’s books and records, under Delaware and Virginia codes, to bring a “direct claim” that is not barred by HERA's statutes. Pagliara seeks to investigate potential claims of civil wrongdoing found in unlawful and inequitable transactions directly related to the enaction of Net Worth Sweep. Pagliara wants to know all that occurred and not just the narratives provided by the FHFA and Treasury or inferences made from what occurred. He seeks corporate facts.

The FHFA seeks to bar Pagliara's inspection of Fannie Mae's and Freddie Mac’s corporate records by arguing that HERA's federal statutes grant succession to the FHFA, as Conservator of the GSEs, all the rights of the GSEs' shareholders, including those asserted by Pagliara. Therefore, the FHFA, as Conservator, filed this motion to substitute itself for Pagliara (remove Pagliara as Plaintiff) in the Fannie Mae complaint and to stymie the Pagliara's inspection of the GSEs corporate records.

The motion is a tactical and strategic move by the FHFA to completely block all shareholder access to corporate records.

Will the FHFA succeed?

That answer depends Judge Sleet's reading and interpretation of HERA and its relation to Delaware law.

Sources:
Freddie Mac Complaint
http://gselinks.com/Court_Filings/PagliaraVA/2016-03860-0001.pdf

Fannie Mae Complaint
http://gselinks.com/Court_Filings/PagliaraDE/12105-0001.pdf

FHFA Motion
http://gselinks.com/Court_Filings/PagliaraDE/16-00193-0009.pdf