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Appropriations Clause Queries Continued.
Admin Action should raise Appropriation Clause issues because it will be directly spending UST monies without Congressional Oversight. The actual normal operation of the FHFA is also an issue based on the CFPB v All American Check Cashing decision in the 5th Circuit. I have noted before that the very next day after the DC Circuit Decision was released Collins was Remanded to the District Ct by the 5th and in May the 5th Circuit issued the All American Opinion.
After the All American decision was rendered, the Collins Plaintiffs cited All American in an amended complaint before Judge Ellison who is hearing the Collins suit on Remand as an additional basis to invalidate the 3rd Amendment.
What will be most interesting to me is how the separation of powers claims are handled in the DC Circuit Cert Petition by the Shareholders because it seems clear that the 5th Circuit has not rendered judgement yet on whether the 3rd Amendment should be overturned due to the Appropriations Clause or if the SPSA should be canceled as a retroactive remedy allowed by the SCOTUS Collins Opinion.
The DC Circuit questionable reliance on the 5th Circuit to dismiss the separation of powers claims:
https://cafc.uscourts.gov/opinions-orders/20-1912.OPINION.2-22-2022_1911455.pdf
Here is the last paragraph from the Opinion cited above
Given all these realities, especially the Supreme Court’s description of the extreme limits on the possible relief available to similarly situated shareholders, we agree with the Fifth Circuit that the shareholders have already been afforded the only possible remedy available for Bar-rett’s alleged separation-of-powers violation. We thus conclude that Barrett no longer can assert such a claim on which relief can be granted and that his separation-of-pow-ers claim must also be dismissed under Rule 12(b)(6)
The 5th Circuit has not yet decided what the appropriate remedy is in Collins for the separation of powers claims.
Here is the cite for the most recent Complaint filed by the Collins shareholder plaintiffs at the Remand before Judge Ellison in the Southern District of Texas
https://www.glenbradford.com/2022/06/fnma-fanniegate-1144/
Here is the Appropriations Clause Claim:
Violation of Congress’s Constitutional Power of the Purse Against All Defendants
103. Plaintiffs incorporate by reference the allegations of the preceding paragraphs. Case 4:16-cv-03113 Document 80 Filed on 06/03/22 in TXSD Page 37 of 48 38 104. The Supreme Court has recognized a cause of action for equitable relief to redress constitutional violations by federal officials. See Free Enter. Fund v. PCAOB, 561 U.S. 477, 491 n.2 (2010). 105. Article I of the United States Constitution grants Congress the “power over the purse,” FED. NO. 58;see also FED. NO. 78, including control over the funding of Executive Branch operations via periodic, temporally bound appropriations. 106. The American Colonies inherited, as part of fundamental constitutional tradition, the core axiom that the Executive Branch regularly depends on the Legislative Branch for funding. CFPB v. All Am. Check Cashing, Inc., 33 F.4th 218, 225–32 (5th Cir. 2022) (en banc) (Jones, J., concurring). 107. The Founders codified this principle in the Constitution, particularly in Article I, Section 9, Clause 7: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.” 108. An executive agency that lacks constitutionally authorized funding to operate lacks the authority necessary “to carry out the functions of the office,” Collins, 141 S. Ct. at 1788; see also All Am. Check Cashing, 33 F.4th at 242. 109. Under Collins, FHFA is an executive agency with a single person who heads the agency. 141 S. Ct. at 1786, 1787. 110. “FHFA actions with respect to [Fannie and Freddie] could have an immediate impact on millions of private individuals and the economy at large.” Id. at 1785. 111. FHFA possesses the power to self-fund by drawing assessments from Fannie, Freddie, and the other entities FHFA regulates. 12 U.S.C. § 4516(a); id. § 4502(20). Case 4:16-cv-03113 Document 80 Filed on 06/03/22 in TXSD Page 38 of 48 39 112. Indeed, FHFA’s assessments are within the Director’s discretion, limited only by the Director’s determination of the “reasonable costs . . . and expenses of the Agency” and the funds necessary for “a working capital fund.” 12 U.S.C. § 4516(a). 113. FHFA’s funding structure is not temporally bound. The agency’s power to self[1]fund is a permanent power. See 12 U.S.C. § 4516. 114. While Fannie and Freddie have been in conservatorship since 2008, the FHFA has had control over these central sources of its own funding, including, for example, their ability to petition Congress. See 12 U.S.C. § 4617(b). 115. The FHFA adopted the Third Amendment at a time when it lacked constitutionally authorized funding to operate. 116. Accordingly, the Third Amendment must be vacated and set aside
Thanks it really doesnt matter what we think but probably what is included in the upcoming Cert petition and what Congress may think about an Administrative Action concerning the UST Equity Stake. The Appropriation Clause issue highlighted in All American is definitely on the mind of French Hill who is on the House Financial Services Committee. Check the 2:54 clip from CSPAN regarding
Chairman Powell's testimony yesterday.
https://www.c-span.org/video/?521122-1/federal-reserve-chair-testifies-inflation-monetary-policy
Comments by Representative French:
HOW HAS IT BEEN SINCE CONGRESS HAS IMPOSED ON THE FED AND OBLIGATION TO PAY FOR THE CONSUMER FINANCIAL PROTECTION BUREAU, ALL OF THEIR OPERATING EXPENSES? THEY SEND YOU A MEMO AND ASK YOU TO PAY FOR THAT WHEN YOU DON'T HAVE CASH. IS THAT ADDED INTO THAT DEFERRED COUNT?
I AGREE WITH YOU, I THINK IT SHOULD BE ON APPROPRIATIONS. I HAVE ALWAYS FELT THAT WAY. I THINK IT PUTS THE FED IN UNUSUAL SITUATION. HERE AS EARNINGS RISE...
Bottom Line is that Admin action could be challenged in Court and it could fail leaving DJTII to clean up the mess.
Interesting perspective. I'm afraid I don't know enough about this to say one way or another, but neither would surprise me.
Thanks Mnemonic. Definitely just have ideas and not answers but want to engage in constructive discussions to help shareholders come to their own decisions.
My thoughts are that the payments to the GSEs were pursuant to HERA and all the repayments and excess payments were to the general US Treasury. What would be different under the Calhoun plan would be taking US Treasury assets and spending them on a program authorized by an Administrative Action only. The stated purpose of Administrative Actions is to avoid Congressional Oversight because the Administration knows it cant get approval for what its policy objectives are. Here there would be a special stash of US Treasury money that is intended to be spent without Congressional oversight. Seems like it would be right on point for a Appropriations Clause challenge using the All American decision in the 5th Circuit as precedent for such an act as being Unconstitutional. Perhaps I am really off base but I would expect that the upcoming Cert petition for the DC Circuit case would lay the groundwork for this challenge.
Waiting to see what you propose?. TIA
FNMA
Conservatorship allowed to stand under false pretenses guarded under lock and key by TRAITOR Obama. Is it any wonder big Mike will be 2024 DNC nominee? That is the result of accountability pushed to the side by a weak and inept congress made up of DEMS and supported by RINOS. I believe SCOTUS got sick and tired of their Constitutional duties and responsibilities being trampled on (1st and 2nd Amendments, Biden claiming Constitution not absolute) by the other 2 branches which led to their recent overturning of Roe v Wade for the good of humanity. SCOTUS beginning to wake up and push back by exercising their authority. There's still hope for us IMO.
We should see soon if Chairwoman Waters is relying on the Calhoun Brookings plan for the $ 100bn. Calhoun also talked $ 100bn. The idea is to establish a new subsidiary jointly owned by FNMA and FMCC where the UST stake is held and monetized for equitable housing solutions. The UST equity would be sold off over time. This assumes that the UST could sell its position which probably implies an exit from Conservatorship - it may be possible for the UST to sell its stake to a private equity group in Conservatorship but any investor is going to want freely trading stock which implies an exit.
This probably would run into an Appropriations Clause issue because the reason for Admin Action is intended to avoid Congressional oversight. The All American decision may ultimately have to be decided by SCOTUS. It will be interesting what the shareholder's lawyers include in the Cert petition.
Time is running short. Republicans are likely to control the Senate Banking Committee and the House Financial Services Committee in the next Congress. Admin action would still be possible but Republicans would have incentive to challenge based on Appropriation Clause issues - basically Admin would be spending $ 100 bn of UST funds without Congressional approval
I don't know how Maxine will be able to monetize the GSEs with all of the court cases going on. How to suppose they can do that. TIA
I'd answer on FNMA but I'm limited to 1 post a day (until the GSes are released,lol)
I guess when u start day strong, and slip slope from there, someone always puts a limit to keep profits. One big one anyhow.
Agreed, watch and wait.
Do we know when the fiscal end of year is for mutual funds like American Funds. I thought they were holding common positions that date back to pre-conservatorship. Probably $ 15 to $20 unrealized losses that would be distributed to shareholders. Gigantic sellers - kind of hard to hold positions in common with the DC Circuit decision overturning Sweeney and the likes of Bradford talking 10 to 25 cents. Maybe they are looking to unload before fiscal year end?
Good Summary from familymang regarding Ackman's most recent comments.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=168373565
The Cert petition on July 22nd was not expected a while back and it will be interesting to see how the rationale for Cert is made. Not to say we dont have a long road ahead but in the mean time the GSEs are rebuilding capital. The issue is whether we are entitled to 20 pct before dilution or after a SPS cramdown.
Looks like American Funds and Capital Group rotated a lot of commons for FMCKJ.
We are only gonna make out if they screw up? Washington has the best liars in the world, bar none. Courts are the most corrupt or most swayed in the world, bar none. Justice is not blind, it’s got laser vision and ears like radar, and decisions based on the loud or attention getters.
Deliberate, intentional NATIONALIZATION by Congress supported by DOJ and courts with circumvention of 5th Amendment "nor shall private property be taken for public use, without just compensation" clause. All courtesy of Obama Admin as taught and encouraged by Harvard and Colombia University Law Schools and others. "Bill of Rights not absolute" Biden says. Treason of the highest degree.
Judges that go into "retirement" can just take Senior status and not really retire but just sit in on a few cases. She is still technically retired. They do this because there are too many cases for the existing judges to handle.
Probably released after 7/22
Nice job by lawyers for the shareholders with supplemental filing to the Sixth Circuit in response to UST lawyers recent FDIC related case:
https://www.glenbradford.com/wp-content/uploads/2022/06/20-2071-0050-2.pdf
It seems kind of clear - does Judge Thapar want to be considered for a SCOTUS appointment or not.
Meanwhile the UST Lawyer can even bother to change the salutation from Lyle Cayce who is the Clerk from the Fifth Circuit to Deborah Hunt who is the Clerk of the Sixth Circuit. He addressed the letter to Ms. Hunt but the salutation said Dr. Mr. Cayce.
https://www.glenbradford.com/2022/06/fnma-fanniegate-1152/
Meanwhile, MILLIONS of cons are flowing across the border to fulfill the American dream courtesy FHFA, Treasury, the FED, Fannie & Freddie, Mad Max and the Biden Admin. Sure beats prison facilities. Later they return to their night jobs of burning down food processing plants, looting businesses and call it a good ole days work after shooting up the neighborhood elementary school while the defunded police force is told to stand down all in the name of a not so absolute 2nd Amendment while the voting public remains fast asleep at the switch. Zzzzzzzzzzzzzzzzzz. Trump's wall had a purpose. DEMS ARE TERRORISTS!
Navycmdr
Thanks Ace Trader!
https://pacer.login.uscourts.gov/csologin/login.jsf?pscCourtId=MNDC&appurl=https://ecf.mnd.uscourts.gov/doc1/10119383630
The case number is 17-2185. If you register for PACER you can see the whole docket. It looks like they are in a redaction period now but perhaps you can figure it out. You will need to create a PACER account and go from there. It should give you access to the dockets for all the cases going forward but I am still figuring it out.
Great points Naveedkhan. We know the deck is stacked against us but personally I believe time is on our side because if they can nationalize the GSEs what else will they try to nationalize in the future? I see the common as DJTII options because I believe he has taken the side of the shareholders and probably will not want to be the guy to screw the common shareholders. It really is mostly a story of RINO greed as a co-conspirator to woke capitalism.
Biggest risk is probably a reverse split until this gets resolved but I dont see anything like that happening until they get close to an exit from Conservatorship.
Send me the link I’ll buy it post it
When i get frustrated waiting for this situation to be resolved in the joke of a legal system we now have I do this:
- look at the valuations of a few big banks, some regional banks and some insurance companies.
- i then compare what FNMA would be worth when released from consv. given those companies valuations (holy crap!)
- To tamper my enthusiasm, i think, OK there is downside risk. Let's say the gov. does get to keep 80% (still a good value at 20%)
- Then i think maybe they do need to raise some capital, so i look at ranges of how much dilution this may mean (I can still live with those values too)
At the end of this exercise, I'm still frustrated but do feel better about this stock.
Beach bum and south Florida scammers 1, commons fight for truth 0. Price just keeps dropping and Ps love it.
Thanks FFFacts. Why do you think they brought Judge Cook out of retirement to be on the panel? Do you think this decision is released before or after the Cert petition on 7/22? Looks like the UST must submit its brief in Collins a couple of days before the Cert petition so the shareholder attorneys could have a last look to show a split in the Circuits on the separation of powers claims - thoughts?
Looks like Bhatti Transcript is over 120 pages and will be released to the public in 90 days.
Going through redactions now. Looks like a multi-hour hearing
Saw this on PACER which is a paid for subscriber service - cant attach the link but this could be confirmed with shareholder attorneys. Looks like Patterson presented again because his name was first.
Thapar is like a Gorsuch question is if he can get at least 1 other judge to side with logic.
You're right, I got confused by the cases and listened to the "ROP" hearing once again. The govrat lawyers had thin arguments, let's hope that judges see thru the crap. FMCC
Indirectly it also means that DOJ is arguing for the government (on behalf of the govt) ?
Got it that's what I thought
But don't court comes under DOJ or DOJ is totally separate?
If courts come under dOJ, wouldn't thapar have to fall in line with DoJ recommendations
The US Treasury is trying to use a District Ct decision about a personal claim as precedent to bar the claim of the financial loss by the actions of DeMarco who was not validly appointed.
Seems to focus on whether the remedy that can be issued by the Ct is "exclusive" saying that Trump could of also written down the SPS so the Ct does not have to act because it is not the only entity that could have written down the SPS.
Also saying that the only remedy should be the removal of the bad Acting Director and not actual damages like writing down the SPS.
Bottom line is that the 6th could weasel out based on this logic or something else. We should have low expectations but hope that Thapar wants to do the right thing because he believes in it and/or he still wants to be considered by DJT for a SCOTUS appointment and sees an opportunity to make a Constitutional statement.
Can you translate the legalese into English?
what does this mean?>
The justice department saying " dont rush into siding with the Rop side" ?
Legalese is so confusing..
Check out the Freudian slip or just sloppy unprofessional work by the US Treasury Letter. He wrote to Deborah Hunt who is the Clerk for the 6th Circuit and addressed it to Lyle Cayce who is the Clerk for the 5th Circuit. Sloppy work or maybe he just he knows that Edith Jones wants to give him an All American spanking once Collins is appealed back up to the 5th Circuit.
https://www.glenbradford.com/2022/06/fnma-fanniegate-1152/
Bhatti hearing was on the 17th but we do not have a recording from that hearing yet.
May be I was right
Rop was on 9th
And Bhatti was the one on 18th??
https://www.courtlistener.com/audio/81659/michael-rop-v-federal-housing-finance-agency/
Ohh ok I must have confused my order then. Never mind. Thanks for correcting
ROP was on Friday...We didn't get the transcript yet.
Bhatti was a week earlier and it was video conferenced for all to listen, as I carefully listened.
Collins case calendar. Judge Ellison in the Southern District of Texas in Houston set a new schedule FHFA will try to dismiss again.
https://www.glenbradford.com/2022/06/fnma-fanniegate-1150/
Interesting timing since FHFA Collins brief has to be filed on July 18 four days before DC Court of Appeals SCOTUS Cert filing on July 22.
DC Court of Appeals relied on the 5th for dismissing Separation of Powers claim. Looking forward to Cert Petition. Wonder if Shareholders will cite the July 18 Collins brief for dismissal as one reason for Cert since the DC Circuit most likely was wrong to rely on 5th Circuit as reason for dismissing separation of powers claim. The separation of powers and appropriations Constitutional issues are the crux of the Collins remand and they have not been ruled upon in the 5th Circuit.
UST attorney has zero respect for Constitution. You're right. Will boil down to whether or not judges respect it or follow traitor Joe in saying Constitution is not absolute. The latter will be an act of treason in the highest degree and will open themselves up to citizen's arrest.
Thanks Eternal Patience. Thapar really has to make a decision about how he is going to interpret the Constitution since the US Treasury attorney explicitly challenged the Appointment Clause. When Thapar asked him if a POTUS could use serial Acting Directors the UST Treasury attorney was unequivocal "YES". While I think we should have low expectations for a positive outcome it will be interesting how Thapar will handle this. The other two judges seemed sympathetic to shareholders and while I would not expect them to be bold by themselves I could see them supporting Judge Thapar if he decides to be bold.
The other interesting part of the oral discussion was the point made by Patterson that voiding the SPS would not be so harmful to the UST because they still would own 80 pct via the warrants.
Low expectations but hopeful as you seem to suggest. Interesting definitely.
What Navy has posted today , an attachment makes absolute sense and makes it a home run for us just based on facts. But we all have been burnt enough with home run hits last year. So nothing is certain
Even in the slightest of the slightest chance that we win and 3rd amendment is determined to be nullifiable, the government will go to scotus again, where their friends will bail them out again
We need a mercy rule win here. That's the only way out
Agreed - Gorsuch seems to get it - still cant get over Thomas and Alioto not agreeing with him on Collins. It is going to be interesting to see what Thapar does with the Appointment Clause issue in Rop. Can he really agree with the UST lawyer that a POTUS could just continue to appoint Acting Officers and circumvent the Senate? Got to believe he still is in the running for a SCOTUS appointment if in a DJTII Admin.
Seems no one cared about today, commons or preferred.
Globalist US now worse than Russia. Russia at least now respects sovereignty, that is until NATO started planting missiles on their doorstep. US wouldn't stand for it with Cuba. Why should Russia tolerate it now?
From 2015, the unpropagandized reason for invasion:
Humanitarian approach, unlike Mad Maxine who thinks stealing from GSEs is ok.
Over the past decade, Houston has cut the number of people who are considered homeless by 63%, more than twice the rate of the rest of the country, The New York Times reports, citing federal data. How has America's fourth-largest city pulled it off? By moving its most vulnerable straight into apartments instead of shelters, while convincing a coalition of local and county agencies, corporations and nonprofits to "row in unison," rather than see each other as rivals. Piecemeal approaches and big business opposition have scuttled similar strategies in Seattle and San Diego.
Recent threats from the activist DEMS on Kavanaugh and ACB at their homes, schools and churches over Roe v Wade. Intimidation tactics being employed. No doubt they were influenced, coerced on the GSE's where hundreds of BILLIONS are at stake. Will jurors be intimidated as well? Where's the DOJ/FBI in all of this? Not a peep out of them. Too busy going after non-violent conservatives. Heard recent election results showing DEMS routed 2:1. Certainly don't need any more RINO's though.
Achilles deFlandres had an excellent post earlier today on the other board about all the victims surrounding GSE theft. Mentioned all those robbed of their retirement accounts. Wish he would repost here. He had a lot of good stuff in there which I'm sure would be useful in upcoming jury trials.
One thing is clear Gorsuch is a true independent Justice who knows the law and knows bullshit when he sees it.
Did Judge Lamberth make a mistake….
The fifth -- and FINAL -- opinion of the day: What is the meaning of "mistake"? SCOTUS answers that question in the context of Rule 60 of the Federal Rules of Civil Procedure. That's the rule that allows you to get relief from a judgment against you if the judgment was faulty.
— SCOTUSblog (@SCOTUSblog) June 13, 2022
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