Fannie Mae-No Politics (FNMA)

[The Man With No Name]

HEY DUMMY, the FHFA HAS A FIDUCIARY DUTY

More fake news in the echo chamber.

https://www.fhfa.gov/SupervisionRegulation/ExaminerResources/Documents/Board-of-Directors-and-Senior-Management_revised72018.pdf

On September 6, 2008, each Enterprise was placed into a conservatorship by FHFA. As
conservator, FHFA succeeded to “all rights, titles, powers, and privileges of the regulated entity,
and of any stockholder, officer, or director of such regulated entity with respect to the regulated
entity and the assets of the regulated entity.” FHFA is expressly authorized to “provide for the
exercise of any function by any stockholder, director, or officer” of the conserved entity.
These powers give FHFA the authority to act as a board of directors, manage its conservatorship
obligations directly without what is commonly recognized as a board of directors, appoint a
board to serve only as an advisory board, or take on the role of day-to-day management.
FHFA chose to reconstitute the board of directors of each Enterprise as an active body
overseeing Enterprise management. Under this arrangement, the reconstituted boards and each
board member owes the traditional fiduciary duties of care and loyalty to FHFA as conservator,
rather than to the shareholders. In addition, for an Enterprise in conservatorship, the following
considerations are to be taken into account:

• FHFA as conservator communicates its strategic direction and priorities to the Enterprise
in such documents as the Conservatorship Strategic Plan, the annual Conservatorship
Scorecard, and other documents and communications as needed. In addition, FHFA as
conservator retains its right and authority to give direction to an Enterprise on any subject
at any time.