Fannie Mae-No Politics (FNMA)

[Dallas66]

My opinion is that Lamberth made his ruling to get this out of his court...he doesn't want to deal with it. Based on the basic laws of conservatorship that you can find on the FHFA website, they are blatantly ignoring the required fiduciary duties of a conservatorship, and openly stating they have the right to convert from conservatorship to receivership. The FHFA also posts on their website that they have no legal ability to "wind down" or dismantle or liquidate or dissolve the GSE's and that it is clearly a responsibility of the political machine to make those decisions through the congress/senate voting procedures.

This is from the FHFA website

http://www.treasury.gov/press-center/press-releases/Documents/fhfa_consrv_faq_090708hp1128.pdf


Q: Can the Conservator determine to liquidate the Company?

A: The Conservator cannot make a determination to liquidate the Company, although, short of that, the Conservator has the authority to run the company in whatever way will best achieve the Conservator’s goals (discussed above). However, assuming a statutory ground exists and the Director of FHFA determines that the financial condition of the company requires it, the Director does have the discretion to place any regulated entity, including the Company, into receivership. Receivership is a statutory process for the liquidation of a regulated entity. There are no plans to liquidate the Company.

Q: Can the Company be dissolved?

A: Although the company can be liquidated as explained above, by statute the charter of the Company must be transferred to a new entity and can only be dissolved by an Act of Congress.