The request by the Wayne County Employees’ Retirement System, a company shareholder, for a temporary restraining order would inject chaos into an already complicated legal process, according to a Reuters report.
It said the action sought by the Wayne County fund would result in “substantial hardship” to the company and force it to divert resources it is using to cooperate with ongoing internal and federal investigations into its accounting, Reuters reported. Fannie said the Wayne County pension fund request would require the company to produce millions of pages of documents and dozens of depositions.
The Wayne County fund, which covers 5,800 retired county employees and owns $1 million in Fannie Mae stock, last week asked the court to block compensation payments to former Chief Executive Officer Franklin Raines and former Chief Financial Officer Timothy Howard (See MI Pension Fund Slaps Fannie Mae with Lawsuit ). The fund argued that the legal move was needed to help Fannie boost capital and to repair confidence in the market after billions in accounting problems were uncovered last year.
The pension fund also asked for documents and depositions that Fanniesaid were too extensive to be gathered and submitted within the requested seven days.