Fannie Mae-No Politics (FNMA)

[YanksGhost]

Here's an interesting tidbit that I expect will be raised on December 9 before the Supreme Court. On FNMA's website under governance, the board of directors narrative clearly states that the 2008 conservatorship was imposed under the auspices of the GSE Act (and not HERA). THERE IS NO SUCCESSION CLAUSE in that statute.

The government defense has used this claim to deny suits in Collins and in the Court of Claims suits. Without succession, fiduciary responsibility to shareholders is not vacated by the board, simply shared with creditors and debt holders. This is a key element in the progression of Angel litigation as it continues to slog through the courts.