I received an interesting email earlier today.I attached a PDF file below. Its an opinion written by Judge Rosemary M Collyer in the U.S. District Court for the District of Columbia.It was in relation to a wrongful termination suit filed by The plaintiff, Caroline Herron, a former Fannie Mae vice president and later a consultant.
The opinion clarifies several issues regarding the conservatorship of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) . It also offers some very clear opinions which could serve as a precedent. Judge Collyer makes a very clear distinction between a conservatorship and receivership. She also clarifies this as well as the governments role as conservator by citing the governments own words as I have done in the past.
She very clearly states the conservatorship is temporary and must end eventually. I will be adding to this post later. I want to cite some key parts of the opinion and offer some more commentary. This was an excellent find; I would like to thank whoever was kind enough to send it to us. Keep the Faith!
Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)
This suit arisesfrom the termination of a consulting contract between Caroline Herron and Fannie Mae. Ms. Herron worked for Fannie Mae as an employee and then as a contractor until she was terminated in January 2010. She alleges that she was terminated due to her complaints that Fannie Mae (1) acted improperly in its role assisting the U.S. Department of the Treasury (“Treasury”) with home loan modifications, (2) wasted public funds, and (3) violated its contract with Treasury. Compl. [Dkt. 1] ¶ 1. Ms. Herron pleads in the alternative. If Fannie Mae is considered a private employer, Ms. Herron brings claims of wrongful discharge, tortious interference, and civil conspiracy under D.C. law.