Replies to post #768146 on Fannie Mae-No Politics (FNMA)

[kthomp19]

So isn't the Lamberth trial a Breach of Implied Contract case?

How come 4617(f) doesn't bar it?

Because 4617(f) reads:

(f) Limitation on court action

Except as provided in this section or at the request of the Director, no court may take any action to restrain or affect the exercise of powers or functions of the Agency as a conservator or a receiver.

Ordering FnF to pay money to shareholders neither restrains nor affects FHFA's exercise of powers or functions.

A request for an injunction to prevent a senior-to-common conversion, on the other hand, does.

The defendants in the trial tried to use 4617(f) (among many other things) to get the case dismissed but Lamberth disagreed.