Fannie Mae is immune from punitive damage claims brought by a former staffer in her wrongful termination suit against the company as long as the GSE is under the conservatorship of the Federal Housing Finance Agency, a federal judge ruled last week. The ruling in the U.S. District Court for the District of Columbia is a major setback for Caroline Herron, a former Fannie vice president who left in 2007 but returned as a consultant in 2009. Herron filed suit against the GSE in June 2010, claiming she was wrongly fired for reporting what she said was Fannie’s mismanagement of the Obama administration’s housing rescue initiatives and grossly wasting public funds.