Replies to post #12651 on Fannie Mae Preferred S (FNMAS)

[KylieM]

Shareholders' powers and rights were not ripped off. The conservator "stepped into the shareholders' shoes" and became *the* shareholder.

They are essentially the same, aren't they? I mean in the context of the standing to sue.

So what is the recourse for the original shareholders if the conservator works against their interest?

Epstein provided the answer. FHFA the conservator breached it's fiduciary duty to the shareholders. This is slightly different from the board of directors breaching fiduciary to the shareholders.