Fannie Mae-No Politics (FNMA)

[mrfence]

My response to your query...

shouldn't shareholders sue FHFA or FNMA/FMCC on the basis that the overestimate (false information) of the accounting losses has caused shareholders to relinquish their rights under the conservatorship, which turned out to be unnecessary from the capital point of view? Is there a pending litigation that touches upon this issue?

The excuse for putting the GSE's into conservatorship was a vague citing of eminent domain for the sake of the national economy more than it was to save the GSE's. The GSE's would have survived on their own after taking their lumps but the US economy would have tanked much worse than it did. Basically, the US Gooberment used the GSE's to prop up the economy by mugging the shareholders.

Since the respective heads of the GSE's were coerced into signing the GSE's over to the FHFA for the good of the country, the shareholder suits to date have only objected to the subsequent profit sweep while stating that they were not arguing about the original takeover in a patriotic gesture of understanding, and acceptance which was a huge mistake IMO!

Basically, the gooberment is testing the sheeple to see how much chit they'll take, and the more they take, the more the Gooberment shovels!