Fannie Mae (FNMA)

[Robert from yahoo bd]

"Number one, we're seeking
prospective relief so that in your hypothetical
the Senate-confirmed director would be enjoined
from making any future sweep dividend, approving
any future sweep dividend payment; and, number
two, we're asking to go back and have the
overpayments, over and above the 18.9 billion
dollars, to be treated as a pay-down of
principal. And that would essentially deem the government paid back."

JUSTICE ROBERTS: A minute to
wrap up, Mr. Thompson.
MR. THOMPSON: Yes, Your Honor.
For decades, federal conservators and
receivers have exercised powers under statutory
schemes that are indistinguishable from the one
at issue here. Yet no conservator or receiver
has ever been before -- before been permitted to
operate its ward for the exclusive benefit of
the federal government.
And so I will close with the words of
Mark Calabria, FHFA's current director: "Fair
and predictably applied insolvency rules allow
investors and creditors to judge the risks of
investing in a company. If that process can be
manipulated to favor one creditor, as FHFA has
favored Treasury, then there is no basis to
judge what could happen if a company fails.
Given the important role the government bodies
play in the resolution of many financial
institutions, it is essential that the
performance of this role assure all stakeholders
of fairness and predictability."