Fannie Mae (FNMA)

[navycmdr]

If the Supreme Court allows Fannie Mae and Freddie Mac shareholders to sue, then it is possible to get to the core of the complaint.

The mission of the FHFA's conservatorship is to preserve and conserve assets and restore the GSEs to safeness and soundness. The net worth sweep prevents that from ever happening.

Further, none of the Housing and Economic Recovery Act's provisions allow the FHFA to forsake its conservatorship mission by sabotaging the companies' recovery "through a self-dealing transaction with Treasury," Bove quoted the suit. That is the foundation of the Supreme Court case.

The FHFA was supposed to help Fannie and Freddie get back into good health, even though that wasn't needed, but it "eviscerated, ravished, or robbed the companies instead," Bove declared