Fannie Mae-No Politics (FNMA)

[YanksGhost]

Judge Sweeney's unredacted and unsealed dismissal of Washington Federal contains a nugget of future CFC vision, hidden in the details. Please see the footnote #4 at the bottom of page 3 where Sweeney states that it was CONGRESS that enticed the Fannie Mae and Freddie Mac boards into accepting conservatorship via the specific content in HERA that absolves board members of personal risk upon acceptance of the conservator.

This explains why CFC ruled in earlier dismissals that Treasury did not coerce the boards to capitulate and accept FHFA as conservator. The court's view is that HERA, itself, created the impetus with the full intent of Congress when they enacted the law.

This likely and fully neutralizes any claim that the Paulson comment about "their heads hitting the floor" has some condemning, revelatory value in proving government impropriety by forcing a C-ship via intimidation.

There are a few other items of interest in the dismissal. One is Sweeney's interpretation of "may" vs. "must" and the court's belief that Congress deliberately intended this flexibility to ge granted FHFA under the goal of broad, expansive authority in managing a conservatorship under HERA.

Just my opinion.