Fannie Mae-No Politics (FNMA)

[Rodney5]

Good question,

At the start of the conservatorship, there were many (not all) JPS Holders calling for receivership, throwing the Common Shareholders under the bus! Well, it backfired, the Net Worth Sweep took place, (wipeout both common and preferred) The ‘Mistake’ instead of filling lawsuit against the entire conservatorship from the beginning the lawsuits challenged the 3rd amendment NWS only. If we return to the Collins case which came in front of the SCOTUS it was asked by one of the Justices, why didn’t the Plaintiffs challenge the conservatorship as a whole instead of the Net Worth Sweep only. It’s called greed my friend.

Only one suit, Washington Federal challenged the Conservatorship and it was dismissed. Why? I do not know. Maybe someone on this board can explain.

Quote: "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 he took the companies over by threat. This fact has been stated in the Washington Federal Lawsuit filed against the government." End of Quote
Page 30-31 Twelve Conditions

Link: https://docs.google.com/file/d/0BxUYhg0cYUOTbkZYVVJkaGtoS1E/edit?resourcekey=0-gU6I5hW3ndG5E3uY2VEyGA