THE CONSERVATOR's FIDUCIARY DUTY ***This article was sent on July 2020 to the WSJ and NYT as an op-ed, but they refused to publish it.*** The recent decision of the Supreme Court to grant the petition of writ of certiorari to an Equity holder of Fannie Mae and Freddie Mac, is the perfect moment to bring up what has become known as the Holy Grail that gives answers to those that wonder why hugely profitable private corporations are still in Conservatorship almost 12 years later: the Fiduciary Duty: the duty or responsibility to act on behalf of someone else. It's comprised, in turn, for several duties and it's different if we are talking about a Conservator or a Trustee. - Duty of Loyalty : act in the best interests of the enterprises and thus, avoid self-dealing. The Trustee adds the duty to act in the best interests of the beneficiaries. - Duty of Prudence or Care : both a Conservator and a Trustee shall exercise that standard of care of a prudent person. The Conservator
NOS. 19-422 & 19-563 In the Supreme Court of the United States PATRICK J. COLLINS, ET AL., Petitioners, v. STEVEN T. MNUCHIN, SECRETARY OF THE TREASURY, ET AL., Respondents. ________________ STEVEN T. MNUCHIN, SECRETARY OF THE TREASURY, ET AL., Petitioners, v. PATRICK J. COLLINS, ET AL., Respondents. ________________ On Writs of Certiorari to the United States Court of Appeals for the Fifth Circuit ________________ BRIEF OF AMICUS CURIAE IN SUPPORT OF THE COURT-APPOINTED AMICUS CURIAE The Law Professor Aaron Nielson outlines a superb explanation of the Charter’s and the Conservatorship’s dynamics in his Amicus Curiae brief. By seeing it down in writing, in black and white, this scandal known as Fanniegate has laid bare a reality that has been denounced a thousand times on internet message boards. He stresses the Charter’s “special borrowing rights from Treasury §1719 (b)(c)” and linking it to their Public Mission and the ability of the enterprises to get funds on the market at