No, incorrect. This is the United States, not some backwoods pit of ignorance like Spain, and in the U.S. anyone can sue anyone under law. It is the court that determines standing and whether the litigation goes forward.
The role of the Board of Directors is clearly stated in the offering circulars for every Fanbnie Mae and Freddie Mac junior preferred stock. A contract claim is made in Angel that the board failed to meet and report dividend payment, favorable or unfavorable, every fiscal quarter. This shareholder litigation can only be filed against the enterprises because they issued the contract offer, not FHFA, and the Agency has no source of revenue from which to pay any court-awarded damages in any case since 100% of their funds arise from assesments levied against FnF.
As for the BOD's laughter, maybe the next sound they hear will be their heads hitting the floor.
A final point on succession must be understood. Fiduciary responsiblity to shareholders is the primary function of Boards. Clearly the contractual function of meeting, considering and reporting to shareholders on dividends, quarterly, was not executed in any open manner, if at all. This lack of responsibility could apply and be just as relevant to common shareholders except they declined to file an enlarged claim for another share class. Too bad not one common shareholder thought to file such a claim before the statute of limitations expired. At the time of C-ship, FNMA had elevated its quarterly dividend on commons to $.50 = a $2.00 annual yield that represented a $2.2 B claim, along with JPS dividends, that were diverted to new Senior Shares sold AFTER C-ship was imposed in what many experts cite as the most egregious self-dealt TAKING in history. This action is at the very heart of the Washington Federal litigation before Judge Sweeney in the CFC.
