Fannie Mae-No Politics (FNMA)

[Rodney5]

More Facts from Tim Howard,
Quote: “HERA also contained a clause not present in any other regulatory statute: “The members of the board of directors of a regulated entity shall not be liable to the shareholders or creditors of the regulated entity for acquiescing in or consenting in good faith to the appointment of the agency [FHFA] as conservator or receiver for that regulated entity.” The rationale for this clause became evident within a matter of weeks. When Paulson met with the directors of Fannie Mae and Freddie Mac to inform them of his intent to take over their companies, neither entity met any of the twelve conditions for conservatorship spelled out in the newly passed HERA legislation. Paulson since has admitted that he took the companies over by threat. Absent the unique provision in HERA exempting Fannie Mae’s and Freddie Mac’s directors from shareholder lawsuits for acquiescing in conservatorship, they may well have balked at Treasury’s demand that they allow the companies whose shareholders they represented to be taken over by the government without statutory cause.” End of Quote

Link: https://howardonmortgagefinance.com/2015/01/