Fannie Mae-No Politics (FNMA)

[Wise Man]

NEVER REMOVE THE CONSERVATOR's FIDUCIARY DUTY AGAIN.
I agree with you that there's confusion about the conservator's powers.
The conservator's duty is to fix their operations and restore their capital levels, not just the survival of the enterprises.
Even judge Sweeney said that the Agreements prevent the enterprises from becoming solvent, by taking all their profits away. So, she understands that solvency is about capital levels, as earnings is recorded as Core Capital.
Curiously enough, this power of the conservator is set forth in HERA:"Put FnF in a sound and solvent condition".
Also, Calabria has mentioned that Capital is the key for the soundness of FnF. Soundness is also achieved reducing their obligations SPS.
And with regard to the fiduciary duty of the conservator, under the traditional view of a conservator, which is also a trustee, protector, etc., no one is talking about maximizing the shareholder value, which is the role of the management and the BOD. We are talking about a fiduciary duty, that it's more related to ethics and a relationship of trust with the shareholders. That's why we transfer our rights and powers to the conservator, otherwise we would have transferred them to a jail mate that would have done a better job, because it couldn't have been done worse than with the FHFA.
Currently there's a clear breach of the conservator's fiduciary duty to the shareholders and the enterprises.