Fannie Mae-No Politics (FNMA)

[FFFacts]

Yes that part is false. As you have rightly said regulations, rules and agreements are not the law. The court renders judgment irrespective of rules as rules can be illegal or unconstitutional. One way out is a bankruptcy but not because there is a rule that restricts capital distribution. Even so the definition of a capital distribution does not meet the standard in this type of judgment. Also defendants never raised this issue in court.