Fannie Mae Shareholders Sue U.S. Treasury

Fannie Mae shareholders have filed a lawsuit against the Department of the Treasury and the Federal Housing Finance Agency according to an announcement made by the group Restore Fannie Mae yesterday. The suit highlights the unusual position of Fannie Mae/Federal National Mortgage Association (OTCBB:FNMA). Shareholders are nominally suing the company itself, but their real target is the government conservators in charge of the company.

The suit is being brought by plaintiffs Bruce Reid and Bryndon Fisher, both shareholders in Fannie Mae/Federal National Mortgage Association (OTCBB:FNMA). The suit asserts that the FHFA has a clear directive to rehabilitate Fannie...