Legal precedents behind denial of punitive damages to Fannie Mae whistleblower

The Housing Wire reports:

A former Fannie Mae employee who filed a whistleblower case against the government-sponsored enterprise is highlighting some of the difficulties plaintiffs face when dealing with agencies under conservatorship.

The case also shows the Federal Housing Finance Agency utilizing its statutory powers to avoid penalties and large pay-outs that could adversely effect U.S. taxpayers.

The former employee, Caroline Herron, lost her most recent push for the inclusion of punitive damage claims in a pending lawsuit against Fannie.

While the case is not precedent in most jurisdictions, it does illustrate some of the legal battles ahead for counties and other parties that sue GSEs in the future. These lawsuits may prove difficult given the fact that it's difficult to ascertain when the GSEs will be classified as government entities with certain immunities or as private corporations.

In the original suit, former Fannie employee Caroline Herron sued the GSE, saying she was wrongfully terminated after bringing attention to allegations that Fannie "acted inappropriately" when assisting the Treasury with home loan modifications. She also accused the GSE of wasting public funds and violating terms of a Treasury contract, according to court records.

This is the problem with fascism: no one is accountable. No word yet on this story from Eric Holder who seems to not know of any corruption at Fannie Mae.