Fannie Mae-No Politics (FNMA)

[YanksGhost]

The Conservator has the legal responsibility to conserve and preserve the solvency and assets of the enterprise. The Conservator has NO legal responsibility to do so for investors in the stock sold by the company prior to the conservatorship. In fact, one of the first tasks implemented by the FHFA Conservator was to suspend all dividend payments to shareholders.

Neither Fannie Mae nor Freddie Mac have ever been insolvent, meaning unable to pay their bills/financial obligations. This means that the Conservator has ensured that adequate capital has been present for safe and sound operation of the enterprises during the term of conservatorship.

Judge Sweeney has made no such blanket condemnation of the SPSPA or any claim of enterprise lack of solvency. I suspect you may be conflating her comments on Amendment 3 and the Net Worth Sweep.