Fannie Mae-No Politics (FNMA)

[ano]

"The AIG case"

Judge Wheeler ruled the 79.9% warrant is an illegal exaction, on appeal this case was overruled because of lack of standing as AIG did not participate in the suit(direct/derivative), then the supreme court refused to hear the case, but the initial order of Judge Wheeler was not overruled, in Fannie and Freddie the FHFA should have filed a lawsuit against the FHFA

"Upon full consideration of the record and the arguments of counsel, the Court finds that FRBNY’s taking of 79.9 percent equity ownership and voting control of AIG constituted an illegal exaction under the Fifth Amendment. The Board of Governors and the Federal Reserve Banks possessed the authority in a time of crisis to make emergency loans to distressed entities such as AIG, but they did not have the legal right to become the owner of AIG"