$FNMA #FANNIEGATE

Fairholme also delivered a petition for a writ of certiorari to the United States Supreme Court Monday, and a copy of the filing is attached to this e-mail message.  Fairholme asks the High Court to answer this question:

-- Does 12 U.S.C. sec. 4617(f ) foreclose judicial review of an agreement between the Federal Housing Finance Agency and the Department of the Treasury to transfer the net worth and all future profits of Fannie Mae and Freddie Mac to the federal government and require both Companies to operate with no capital?

Fairholme says the answer is no.  "If the D.C. Circuit is right, Congress has set up a structure that makes a mockery of our system of checks and balances, with an independent agency headed by an unelected Director not answerable to the President, free to act without regard to Congress’s instructions, and without fear of judicial intervention," Fairholme tells the nine justices.  "Fortunately," Fairholme adds, "the D.C. Circuit is wrong."

Fairholme urges the Court to grant its petition and review the D.C. Circuit's decision.Fairholme Cert Petition