Berkowitz frustrated with Frannie corporate governance

|By:, SA News Editor

"The conservatorship of Fannie Mae (FNMA) and Freddie Mac (FMCC) - now in its sixth year - is perpetuating the pre-crisis regulatory and management shortcomings of the companies,” says Bruce Berkowitz in letters sent to the companies' boards. Berkowitz requests both companies conserve assets, retain earnings to build capital, and stop borrowing for the purpose of paying dividends to Treasury.

He also wants the boards to begin holding annual shareholder meetings and to relist the stocks on the NYSE to ensure more orderly and transparent trading.

FNMA -6.3% premarket