That turns to a discussion of how under-regulation of Freddie Mac and Fannie Mae led to the financial crisis.
Also sued is Daniel H. Mudd, the former CEO of Fannie Mae who now runs Fortress Investment Group, which has assets of $43 billion.
In May, Fannie Mae said it would make a $59.2 billion payment to Treasury by the end of June.
The net cost to taxpayers of the Fannie Mae bailout is now $90.5 billion, down from $96.3 billion at the end of 2011.
In the first half of 2012, loans Fannie Mae acquired had a loan-to-value ratio of 73 percent.
Fannie Mae and Freddie Mac, the government-owned mortgage agencies, have been minting money and turning it over to Treasury.
In addition, on Thursday, Fannie Mae announced (PDF) it would pay another $50.8 billion to Treasury next month.
Thanks in part to such improvements, Fannie Mae reported a massive $7.6 billion profit in the quarter.
With the collapse of the mortgage market, Freddie Mac and its sister, Fannie Mae, are essentially the only games in town.
He drew jaw-dropping guffaws when he claimed he was hired by Fannie Mae and Freddie Mac for his perspective as a historian.
1948, from FNMA, acronym of "Federal National Mortgage Association," established 1938.
A publicly traded security backed by the Federal National Mortgage Association (FNMA), established in 1938 (1948+)