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Collins Panel in 5th Circuit Sept 8th Oral Arguments announced:
JUDGES JERRY E. SMITH, LESLIE H. SOUTHWICK AND STEPHEN A. HIGGINSON
https://www.ca5.uscourts.gov/oral-argument-information/court-calendars/Details/1690/
Unfortunately this looks negative for shareholders since Southwick and Higginson voted to uphold the NWS in the 2019 proceeding. Smith voted to void the NWS.
Smith - Regan Southwick- GWB - Higginson - BO No DJT appointees
Probably will need to hope for an En Banc review after Panel Opinion.
You are right Ace Trader. Collins panel will be chosen this week. SCOTUS was results oriented and now is figuring out how to resolve the inconsistencies of the Collins decision.
Hi Skeptic7
The 5th Circuit upheld the NWS in its 2019 Collins opinion 9-7. This was granted Cert and was overruled and then sent back to the 5th Circuit on Remand. The 3 Judge Panel for the appeal on the Southern District of Texas dismissal will be set next week with oral hearings on the 8th. The Panel could void the NWS/SPSA or it will probably be voided 9-7 if it is appealed again En Banc.
Thanks Robert - got to wonder if Judge Duncan would have voted differently on the NWS if he thought SCOTUS would have come up with the "Special Conservatorship" It is a Panel this time - I had previously thought it would be EN Banc but it is a panel that will meet in New Orleans on the 8th.
Thank you Robert - you and Guido have always fought the hard fight.
Here are the judges that voted for retrospective relief vacating the 3rd Amendment in 2019.
"In my view the proper remedy for a (removal separation of powers Constitutional violation) is to vacate the Third Amendment. I respectively dissent form the court's decision to instead grant a prospective remedy. "
Judge Willet joined by Jones, Smith, Elrod, Ho, Engelhardt, and Oldham.
Collins v McNuchin Case 17-20364 Date Filed 9/06/2019 Page 118
I think we can add Judge Wilson a DJT appointee after Collins and expect Judge Duncan to switch his vote ( this is the Judge that was disrespected at Stanford) This is the 9-7 I am handicapping
Hi Robert - here is the latest Collins plaintiff's brief:
https://www.glenbradford.com/2023/05/fnma-fanniegate-collins-v-fhfa/
As always - thanks for your reply. Here is the info on the Collins Hearing - look at the Sept 8th hearings on the last page.
https://www.ca5.uscourts.gov/oral-argument-information/court-calendars/Details/1690/
I think the composition of the panel will be very important. It is my understanding that the panel will be selected next week.
Hi Robert,
I am wondering if the Plaintiffs lawyers in the Collins hearing on Sept 8th will give judicial notice the 5th Circuit panel that will hear the case
Shareholders have a good chance of having the SPSA being voided as a Constitutional remedy. They lost 9-7 on the NWS when Collins went to SCOTUS but that was before the "special conservatorship" ruling from SCOTUS. It is probably a 9-7 majority for shareholders if it gets appealed again En Banc but the panel composition is very important. How many of the 9 judge majority will be placed on the panel is very important.
Next week a 3 judge panel for the 5th Circuit will be selected to hear the appeal of the Collins Remand case. Oral Hearings scheduled Sept 8th at 9 am in New Orleans.
Hi Kthomp
Bryndon Fisher is bringing a Derivative Suit so the UST would recover any damages on a 80/20 basis.
The GSES would optimally benefit because they would help build capital and do it in a way that does not cram down existing investors.
In the end the UST would be only out the 20% that would accrue to existing common
Appreciate the insight whomarjb. She was at the FDIC for over 20 years - honestly, she probably is over her head but is a decent person from a solid south side Chicago family. I saw here Confirmation Hearing on CSPAN and I believe her parents attended and they are probably very proud of how far she has come. As TH has said - the impetus for anything to get done near term has to be Jared Bernstein and Lael Brainard. I doubt Director Thompson would oppose any proposal by Bernstein.
Looks like a significant development Stern
https://www.americanactionforum.org/about/
Douglas Holtz-Eakin former CBO Director is the head
Thanks Skeptic7 - You are a stand up person! I have been continuously wrong until you have finally been wrong. Glad to know you are happy to be wrong - lets both continue to be happy going forward!.
What happens with the Collins appeal in the 5th? Does the SPSA get voided?
American Action Forum?
https://www.americanactionforum.org/press-contact/
Have not heard of them before
Collins Hearing before 5th Circuit at 9 am on September 8th. Panel to be selected next week
https://www.ca5.uscourts.gov/oral-argument-information/court-calendars/Details/1690/
See bottom of link for Sept. 8th
Thanks for the post DCBill! TH seems to be right on the point. Near term the next news to drop will be the selection of the 3 Judge Panel for the Sept 8th Oral Hearing in the 5th Circuit in New Orleans.
Hi Glenn, What is your most recent price target for common? - still at 10 cents?
Yes - really cool.
If we get the right judges on the Collins Panel - Collins could be the one to void the SPS. It will take some time for the Opinion but the Opinion should come down about the same time as the SCOTUS SPS case so we should have some good clarity.
Any thoughts about whether or not the Collins Plaintiffs will give judicial notice to the 5th Circuit. _ By the way this Administrative Agency which is most likely Unconstitutional was just deemed to have acted in bad faith - by an 8-0 Jury verdict in DC!
WOW! That is really interesting - got to say it does make it more clear! Thanks EternalPatience!
Here are the two issues before the 5th Circuit in Collins on Sept 8th
1. Whether Plaintiffs are entitled to a mandatory injunction commanding FHFA and Treasury to wipe out Treasury’s nearly $300 billion liquidation preferences, based on a theory that the unconstitutional removal restriction impeded a former Presidential Administration from pursuing financial reforms that Plaintiffs hypothesize might have included such a step.
2. Whether Plaintiffs’ newly added claims under the Appropriations Clause are foreclosed, either because they are beyond the scope of the limited remand that governed the district court proceedings or outside the statute of limitations. If not, whether the funding mechanism Congress enacted for FHFA— consisting of financial assessments on regulated entities—comports with the Appropriations Clause, and whether any alleged violation would provide a basis to Case: 22-20632 Document: 49 Page: 15 Date Filed: 04/03/2023 4 US 173061234v18 vacate the Third Amendment when neither the money for Treasury’s infusions to the Enterprises nor the money for the Enterprises’ dividends to Treasury come from the funding mechanism alleged to be unconstitutional
https://www.glenbradford.com/2023/04/fnma-fanniegate-1280/
Also - whether or not the SPSA should be voided because the FHFA violates the Appropriations Clause - like the CFPB case before SCOTUS
Yes - just saw this - said the same thing
I think 20 mins is the norm. Just found out Panel will be selected the week of the 28th and the three judges will be posted online. Which Judges are selected will be really important. Hoping for Edith Jones
Collin v Treasury will be 3 Judge Panel rather than En Banc. Set for 9 am on September 8th
https://www.ca5.uscourts.gov/oral-argument-information/court-calendars/Details/1690/
Panel will be posted online the week of August 28th.
Yes - Looks like Hearing is set on Sept 8th at 9 am in New Orleans. Just saw this and looking for link.
Good Morning Skeptic7 - You were wrong. A DC Jury ruled 8-0 that a federal Administrative Agency acted in bad faith. God Bless America - God Bless the fair-minded jury members.
Collins v Yellen En Banc 5th Circuit. The NWS will most likely be declared Unconstitutional on a 9-7 vote. Hearings should be in September or October. The 5th Circuit may want to wait until Scotus has its oral hearing on the CFPB case in October.
Thank you Robert!! Mr. Market was wrong on this one!. Hopefully this is the beginning of the end of the USG takings!! Next up is either the CFPB case at SCOTUS or Collins v Yellen En Banc at the 5th Circuit, We should win in the 5th Circuit!
Thanks Guido. We are still waiting for the 5th Circuit to set a date for the En Banc oral arguments for the appeal of the remand of Collins v Yellen. Fingers cross for the Lamberth class action, but we should manage expectations since Mr. Market has not given us any indication that the plaintiffs will win. If we win - it will be the beginning of the end of the USG misappropriation.
Thanks stupdate! Did that filing also say that jury deliberation starts Monday? It was not clear to me when I looked at it on glenbradford.com.
Thank you Robert! You are a scholar, gentlemen and dedicated patriot!! Your dedication in the face of overwhelming odds against us is awe inspiring!
Good perspective Guido2 - Mr Market is telling us that the USG will win again. Big surprise if the Plaintiffs win,
Thanks Robert - who is on the 4th Floor? - the DC office of Parrott Ryan Advisors? Maybe the Paulson Institute DC office down the hall?
Thanks Robert
TH quote
" As long as interest rates stay high, this net income will continue to boost Fannie’s profits, and grow as its shareholders equity grows."
110 Bn X 5% = $5.5 bn in more earnings
200 Bn X 5% = $10 bn in more earnings
This is why the SPS needs to be voided either at inception or in the future. This will all accrue to common shareholders. As the song goes - "Time is on my side" as long as the SPS gets voided at some point - hopefully at inception and the SPS is limited to the initial $ 2 bn.
Check out the Commissioners for the Financial Crisis Inquiry Commission Commissioners. Keith Hennesey was the Chair of the NEC at the time of the Barrons "For Your Eyes Only " Memo regarding the benefits of Nationalization of the GSEs in March of 2008 and at the time of the imposition of the Conservatorship of the GSEs in September 2008. Keith Hennessey at the NEC and Hank Paulson at UST in the GWB Admin were in charge during all of 2008.
http://fcic.law.stanford.edu/about
And - they started to plan the taking (Nationalization) for no compensation as early as March 2008 - its all in the Financial Crisis Inquiry Commission public records:
https://fcic-static.law.stanford.edu/cdn_media/fcic-testimony/2007-2008_Fannie_Mae_Timeline_and_Supporting_Documents.pdf
Thanks for all your hard work and analysis on this and all your other posts - Rodney. Personally I believe that the warrants are enforceable even though the Conservatorship was a pretext - especially for FMCC. FMCC did not have the sub-prime related losses that FNMA had and always posted a positive cash flow result even during the years right out of Conservatorship.
I think your numbers are credible giving a best case value before any dilution from new capital raises. There will have to be new capital raised and there will be dilution. I would be happy in the $ 8-15 range on a fully diluted basis.
Thanks again Rodney! Dont give in and dont give up!