Fannie Mae-No Politics (FNMA)

[Dallas66]

the BOD technically has no say in the GSE's per terms of the conservatorship. It is effectively a dictatorship with Mr. Watt as the dictator. I am sure he will seek input from both BOD's at some point, but keep in mind...Watt is the man with the target on his back as far as the direction this goes OUTSIDE of court.

some very good reading to give some insight on the GSE's situations and possible resolutions.



http://fhfaoig.gov/LearnMore/FAQ

http://timeline.stlouisfed.org/pdf/CrisisGlossary.pdf

I like this entry in particular...keep in mind this is from the FHFA website.

"Conservatorship
A conservatorship is the legal process (for entities that are not eligible for Bankruptcy court reorganization) in which a person or entity is appointed to establish control and oversight of a
company to put it in a sound and solvent condition. In a conservatorship, the powers of the company’s directors, officers, and shareholders are transferred to the designated conservator."