Fannie Mae-No Politics (FNMA)

[Bodach]

I don't believe there will be a wind down of any case. All the shareholders would have to do is file a class action lawsuit, and cite the 5th amendment:

"No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation."

They're looking to be profitable again. There is no need for the conservatorship anymore, pending release of these earnings and they are what many think they are. The government can't just use Freddie and Fannie as a piggy bank. The courts would shoot it down.

I believe all this is known; hence the lawsuits on the banks to shift blame. This creates a situation where the government has an excuse to shift focus on what they "have been saying". They don't lose political points, and then get to claim credit on a housing comeback.

The story here has yet to be told.

And I think it will be one for the history books.