Fannie Mae-No Politics (FNMA)

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Shelley from Yahoo message board

Supreme Court Yes. They broke the law.

They could have put the Fannie Mae / Federal National Mortgage and Freedie Mac into receivership and liquidated them. They could have done it. The problem is they DIDN’T do it. They put them into conservatorship and by doing so by law have an obligation “to preserve the value of the assets for stakeholders”. What they then did with the 3rd Amendment is to begin to perform a de facto receivership on Fannie Mae and Freddie Mac’s by slowly liquidating them by transferring their wealth to the Treasury. That is a “no-no”.

Receivership and Conservatorship are two VERY different things. There are very different requirements of the Conservator and the Receiver. A receiver receives the assets to dispose of them, the conservator becomes a steward of the assets to preserve them. The two are not remotely related. What the gov’t did with the 3rd Amendment is turn a conservatorship into a receivership. They do not have the right to do that. THAT is that these lawsuits are about.

The government continues to argue “we said we could do it so we did it, end of story”. Unfortunately, there is thing called the rule of law and even our gov’t is beholden to it. This is the reason these cases keep moving forward. I would expect that as long as the government continues to make the same arguments going forward we should see the same results from the Supreme Court.