FHFA Seeks To Preserve Fannie Fraud Payout Priority
By Martin Bricketto
Law360, New York (January 19, 2012, 2:06 PM ET) -- Fannie Mae's conservator on Wednesday asked for summary judgment of a suit by two pension funds to void a rule putting securities fraud claims last in line in Fannie Mae's receivership, claiming it followed statute and that its acting director legally implemented the rule.
The Public Employees Retirement System of Ohio and the State Teachers Retirement System of Ohio contend that the conservator — the Federal Housing Finance Agency — lacked the authority to promulgate the rule. The agency's acting director, Edward DeMarco, has not been...