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He let's in the US Treasury memo into evidence at the last minute but won't let us bring Stedman in to trash the veracity of Demarco.
I'm glad this is in the Jurors hands and not his.
Almost always lawyers don't serve on a Jury. Accounting/Finance would be awesome though.
As I recall, during the trial, P showed them the HERA Language stating that the Primary Powers of the FHFA is to Preserve and Conserve the Assets of the GSES.
D showed them the Incidental Powers pointing out the "in the best interests of the FHFA and or the public it serves."
Imbellish, can you tell what the title is for PC 388a?
Family Manager posted some type of worksheet on this didn't he. Does it include deductions for legal fees and costs?
Verdict in? I'm not there
The entire 15 years of conservatorships is disturbing. And the feds are as recalcitrant as ever, failing to accept accountability and worse hiding the facts from the hard working Americans who partly relied on these investments to fund retirements, as Tier 1 Capital for Community Banks, and in their S&P 500 Indexes.
Sad
Given the large sums involved it's probably less of a percentage of the eventual damages than is typical in personal injury or other contingency fee cases.
Dr. Thakpor and Dr. Dharan emphasized many times to the Jurors that the 10% interest was TWICE the interest rate of the other large financial intermediaries that took bailouts.
Hell yeah the P's made the point, that's how I learned it, when Dr. Dharan explained it when the P's attorneys asked it!
Can you believe that, the companies had to borrow the money to pay the cash sweeps related to the noncash accounting losses writeups?
I hope we win, but what's the attorneys fees and costs subtracted from that, including likely appeals?
Learned something new during the trial, Fannie Mae and Freddie Mac actually had to go into the debt markets and BORROW THE MONEY (PLUS INTEREST) to actually pay the 50B -75B in reversal of the DTAS in 2013 - 2019 to pay the CASH SWEEPS!
I believe it was also true of the Accumulated Loan Loss writes up!
And the federal government continues to hide the ball and prevent full disclosure via Executive Privilege and National Security Exemptions.
Let's hope it's a quick Jury Verdict and they want to get out of there before 5pm on Friday!
Thanks! It's not overwhelming though. These are great companies and the Government has treated the Shareholders badly for various, mostly, political reasons at various times.
I told them that I would treat them all to a Costco Dog, so I'm sure we'll win, you know, just to seal the deal !
Hard to ignore a letter from Timothy Geithner isn't it? Especially if it refutes one of P's arguments.
Had to leave at 330pm, see Katie B for latest
DX928 for the Jurors, I don't know if you can get it on PACER, probably not.
There's huge electronic equipment between the audience and the Jurors (Computer Screens). No one really knows what they are thinking, we'll find out shortly.
The Jury can put as much or as little weight on anything in the trial, including thinking this is total BS.
It's on official US Treasury Letterhead and looks fancy and well laid out, plus we're in Uncle Suggy's town, and EVERYONE is on the payroll!
The Treasury Action Memo purports to give neutral reasons why the Treasury Nationalized our Corporations, including "strengthening the GSE'S", which Dr. Dharan and Dr. Thakor stated is total bunk, because the NWS makes the GSES WORSE OFF FINANCIALLY.
Almost done! Note to self: Arnold & Porter lawyers (on behalf of Uncle Suggy) are big fans of the trial ambush tactic.
Less than 24 hours ago, they got into Evidence over P's objections, THE TREASURY ACTION MEMO.
This memo, signed by none other than Timothy Geithner himself purports to offer the official "CYA" on why Timothy signed off on the biggest heist in US History!
No wonder Lamberth let it in at the 11th hour!
Lunch Break until 130pm. Nice Closing Mr. Hume! Clear, Concise, and Extensive! Visuals were awesome and yes the Shareholders and their Corporations have been treated extraordinary badly by an ideology run amok FHFA and UST!
Next up D Closing where they will attempt to Confuse, Deceive, and Create a False Sense of Urgency.
Who will the Jury believe?
Stay tuned!!!!!
That could please alot of stakeholders, what about the low income housing lobby?
DeMarco testified this afternoon that he gave ZERO consideration to the interests of Shareholders and he was all about the 'safety' of the MBS market.
The Government is selling the idea that the NWS was in the best interests of the public because it froze the UST Commitment.
But both Dr. Thakor and Dr. Dharan said that the 'public interest' is the safety and soundness of the GSES and you need Capital to do that and that giving away ALL the capital with no possibility of a capital rebuild with the NWS is the antithesis of preserve and conserve.
Does the Jury understand this?
We'll find out shortly.
They try to help targeted groups of people, but their methods of using the government to solve a problem ends up costing 3x the private sector cost.
And so it goes. The banks are loving the status quo with highly elevated GFees juicing their own portfolio mortgages returns!
15 years of conservatorships and no one's complaining except 10,000+ Shareholders.
Thanks Imbellish, but no that's not it. This one is a very official looking, on United States Treasury Department Letterhead, where Timothy Geithner actually initials certain salient points and I think it's a couple pages long.
Around 3:30pm, D motioned to move it in as an Exhibit (#35?) and put the first page up, but not long enough to read much. P objected and par for the course, the Judge let it in.
After reading Jim Parrot's coauthored Brookings Institute Piece (thanks for posting Navy!), I am wondering if one of the motivations at UST for the Net Worth Swipe, is what Jim Parrot said in today's publication.
Namely, the idea was that perpetual government controlled GSES via a perpetual conservatorship will keep the GSES required internal required rate of return lower than if they were returned to the Shareholders.
Thanks, Imbellish! If you can and if you have access to PACER and the document has been scanned and hasn't been REDACTED by Uncle Suggy, take a look at the Exhibit (35?) that the Judge allowed into Evidence this afternoon per D's GRANTED Motion over P's objection.
It is an internal UST several page memo signed off by Timothy Geithner related to implementation of the Net Worth Swipe.
Can you let me know if you where able to find it?
I think tomorrow is Closing, but I left around 330pm, but Katie B was still there. Check her Tweet account.
That's a great job by Joshua Rosner! It seems that UST incorrectly assumed that the Private Market would come back in and eventually have a bigger footprint in the Secondary Mortgage Market and the NWS would force Congress to decide the "future of the US Housing Secondary Finance Market".
10+ years later the GSES dominate the Secondary Mortgage Market in the US and the US Congress has no solution.
Worse, Lockhart, Demarco, Watt, Calabria, and now Thompson all say that they are "waiting for the US Congress to decide the future of the US Housing Secondary Mortgage Market".
The Status Quo seems almost unmovable when the Judicial, Executive, and Legislative Branch fail to act.
Wow! So Demarco continues to maintain his belief that the NWS preserves and conserves the GSES assets by "maintaining the value of the Fannie Mae and Freddie Mac MBS" which they have in their portfolio.
It's like D is really reaching to somehow justify the transferring of all the GSES profits into perpetuity as somehow helping and preserving and conserving the assets of the GSES by keeping the US Treasury Commitment fixed.
Just very bizarre this whole GSE drama!
Dr. Dharan was very effective at rebutting Dr. Attaris previous D testimony.
Almost done. Guess which Judge just allowed in a US Treasury document in for D (despite P's Objection)?
Do I need to add that the Judge has excluded all those UST email Smoking Guns from the Jurors to see that P tried to get in?
Dr. Thakor is great on Cross and Ms Davis was very effective on Direct.& Redirect!
Lunch Break. Resume at 130pm. I think it is coming to a close as D rests. Maybe today or tomorrow.
https://fortune.com/2023/08/08/fannie-mae-ceo-housing-today-tale-of-two-markets-real-estate-finance-priscilla-almodovar/amp/
"With the commitment of housing’s many stakeholders, we can expand housing opportunities in ways that are sustainable and responsible-both for the housing system and for homeowners. We can have a housing market that is strong, fair, and works for all-not just those who are fortunate to already own a piece of it.
Priscilla Almodovar is the CEO of Fannie Mae."
https://finance.yahoo.com/news/u-consumers-saying-bad-time-171006324.html
"The portion of U.S. consumers saying now is a "bad time to buy" a new home increased by 4 percentage points in July to 82%, according to a report released Monday by Fannie Mae, the highest level since the mortgage finance giant began conducting the survey in 2010."
"Not all was pessimistic in the report, however, as confidence in the labor market and expected decreases in future mortgage rates pushed the overall Home Purchase Sentiment Index to 66.8, up 4 points year over year and 0.8 points from June.
"While consumers are reporting confidence in the components related to their personal financial situations, it’s unlikely we'll see housing sentiment catch up to other broader economic confidence measures until there is meaningful improvement to home purchase affordability," said Doug Duncan, Fannie Mae senior vice president and chief economist."
Probably no trial Friday, IF Donald John Trump shows up on this pretrial hearing:
https://amp.cnn.com/cnn/2023/08/08/politics/trump-protective-order-hearing/index.html
"Trump is not required to be present at the Friday hearing in DC, Chutkan said."
But, free publicity? He could show up. If he does, the Judge will likely give him some finger wagging and he will be on his way with full press coverage, including our favorite US District Court Reporter, Katie B.
"However, he admitted he has long believed that Fannie & Freddie's charters were fundamentally flawed and believed that while he was FHFA acting director. DeMarco will return to the stand tomorrow morning."
I just would like to believe that it's ignorance plain and simple!