Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Yup, there's plenty more for a juicy Bloomberg story there for their target financial news audience, that's for sure!
I agree, and thank you family Mang for pointing that out! As we all have seen over this long drama and the years culminating to this point, the WSJ, Bloomberg, W. Post early on went with the 'enriching the evil hedge fund guys' story line and failed to look under the hood on this horrible federal government overreach.
Marc Rubinstein is perhaps the FIRST financial reporter who has lifted the hood and figured out that the Death Spiral was a bogus narrative to justify Nationalizing two private shareholder corporations! FINALLY!
I believe our cause is Just, that Nationalizing private corporations is bad public policy and in the end I believe that eventually we will get our private corporations back.
You can see why the SCOTUS SHOULD HAVE USED A BULLDOZER TO DECLARE HERA UNCONSTITUTIONAL IN ITS ENTIRETY INSTEAD OF USING A SCALPEL ON THE UNCONSTITUTIONAL POTUS REMOVAL RESTRICTION.
But that would may have opened the flood gates to all types of litigation challenging past FHFA decisions and caused chaos and confusion with in an important sector of the US economy.
It seems Collins remanded to the lower courts to wrestle with what (if any) remedy is appropriate and whatever the lower courts decide may or may not end up standing in the end.
It seems like the SCOTUS gave the lower courts some room and latitude to figure out the remedy (if any) is allowed.
And the lower courts will likely wrestle with that for a while.
Thanks for the link, imbellish!
Government Lawyers to Federal Judges: "Believe in the Death Spiral and we can keep their Economic Rights"
Think about just how many times we have been BULLSH*TED by this and previous administrations:
Sandra: "We're preparing for an exit from conservatorship'
MC: "Could be next year maybe, will be biggest IPO in history '
SM:. "Maria, we need to get the GSES out of government control."
Even initially, the very 1st FHFA Director assured us that the conservatorship would be temporary until the GSES are restored."
The government will play the status quo longer than either you and are around to watch this horrific governmental overreach and taking of our Economic Rights.
This entire 14 year+ CONservatorship is the most bizarre set of facts involving Fortune 500 corporations that I have ever seen in my lifetime and for our posterity's sake, the federal government overreach needs to be addressed.
Well, why do you think that the federal judiciary will NEVER provide the relief that Plaintiff Shareholders are seeking?
Q: How does "in the best interests of the public it serves and/or FHFA", limit the power of the FHFA?
A: It doesn't.
The NWS is an affront against Capitalism and if allowed to stand, will be the blueprint for the federal government in the future to Nationalize other private shareholder property.
Good point and I appreciate your input! I mean this entire 14 year CONservatorship, now entering its 15th YEAR, is the most bizarre and longest conservatorship I have EVER heard of, even Sandra testified it was unusual at her hearing.
Given the unprecedented nature of the August 17, 2012 NWS, it doesn't seem like much of a hurdle for a reasonable Jury to conclude that the Sweep WAS a violation of our implied contract rights as Shareholders, IF we survive the SM and it survives the inevitable appellate process.
Good luck to you and the JPS holders as well as the common.
It's pretty simple that bailout funds are expected to be returned to the government, but never is it expected that the federal government will instead act with vengeance and opportunistically to Nationalize formerly private corporations, until now.
Think about the message this sends to Fortune 500 corporations and its impact on the next inevitable financial crisis....
It is what it is, but why give Plaintiff shareholders any hope if "the secret plan" of the Federalist Society or whomever is to destroy the GSES? Why extend the time for Plaintiff Shareholders to file their Petitions?
Not only would the Petitions have to be granted BUT there would be MORE oral arguments and eventually a decision.
The Gubmints lifetime is likely a lot longer than ours ...
In theory the GSES will build capital in the meantime, are you split on your holdings between fulcrum and common or you've already sold/never bought and you loaned your son in Miami some money and you are trying to teach him and his fellow travelers a lesson?
True, the Supremes had an opportunity to stop the NWS dead in its tracks. We'll find out if the NWS survives a Takings Claim, but first the Supremes will have to grant the Shareholders Petition for a Writ of Certerorri otherwise the cofc 3 Judge panel decision will be the established Precedent and God help the United States during the next inevitable financial crisis as privately held corporations avoid taking financial assistance for fear of the federal government nationalizing them. I take it you're not optimistic on that one either?
Is the Federalist Society out to get us?
Sorta like the Fulcrum security?
Shame on Uncle Suggy for acting with Vengeance and Scoring Political Points instead of acting like they were statutorily required to do as a self appointed conservator.
If I was Uncle Suggy, the more Jurors who rely on gubmint assistance, the more receptive they will be to my BOGUS Death Spiral BIG LIE! That's why Margaret Sweeney said betting on the outcome of a court case is not such a good idea. You and I know our cause is Just, but will the American Justice System?
We'll see what happens....
Bill and Bruce have realized (as most of us have) that what the federal government enacted with the Net Worth Swipe was a major federal overreach and unlikely to withstand judicial branch scrutiny, but so far the federal government has not had to pay a dime, and we are approaching year 15 of the temporary CONservatorship.
Go family Mang, the trip will be a business expense so you can keep your investors updated on their investments.
Just shameful that our federal government would steal all our future profits into perpetuity with zero respect for our private property. And EVEN TO THIS DAY, they act as if they've done nothing wrong!
Well, sometimes just having the trial broadcast live can have an impact on how people testify and theoretically influence the outcome of a case. Look at the Johnny Depp trial ...
We haven't really had a full blown trial yet where the facts are shown in and in the full light of day! No wonder the federal government has been fighting this tooth and nail trying to get this fact pattern and their atrocious behavior from seeing the full light of day with all these pretrial motions.
Seems pretty clear that the NWS violated our reasonable expectations as Shareholders that the conservatorship would be temporary until the enterprises were conserved and preserved and became profitable again.
I believe that the Treasury advances were given to the GSES in return for an anticipated payback plus 10% per annum on the unpaid principal balance.
I think one of the POTUS'S weaknesses is that they evaluate practically every decision from a 'what's the best decision to help me stay in power", not necessarily, 'what's the right thing to do.'
This may be where a Jury (with no skin in the game) may be beneficial.
That's why it would be great to have one of us watch the proceedings. The lower down the socioeconomic ladder, the better for the Gubmint.
There's really 2 schools of thought though on how to approach Voir Dire, one says its critical the other not so important.
What the federal government did here was pretty abusive and as long as you know how to tie your shoes we should be okay.
Why do you think that the government is demanding to put BB on the stand, to bring to real life the idea that a verdict for Plaintiffs is some type of reward for the 'evil hedge fund guys'.
But for the deep pockets of well heeled shareholders like Bruce and Bill as well as a few institutional, few people have the patience, time, and resources to aggressively go after an adversary with unlimited resources and time.
Shet out of luck! Although the press could petition Judge Lamberth to allow cameras in but I think the USSCT said no cameras, hell I'm pretty sure you can't even bring your cell phone inside!
That's right but the size of the prospective Jury pool is also limited, the questionnaire will help each side weed out and pinpoint the best ones for elimination and to keep. In the end it's hard to tell for sure as you never will know if it would have made a difference.
The Gubmint lawyers are going to try to hard sell the bogus Death Spiral scenario, the SCOTUS was gullible enough to accept it hook, line, and sinker but here, the Jury will see just how bogus and what a true lie it is, especially considering the facts and evidence of the intentions of the federal government in enacting the Sweep to wind down the GSES and "salt the earth with their carcasses.". Good times, good times!
Could be great timing Rick, best of luck to you!
Well, Judges understand that the prospective Jurors would rather be anywhere else than deciding a subject matter as dry as a contractual dispute. Judges usually have a fairly high hurdle to let people off Jury duty.
I'd like to go down there and see it see it live, but I already am unavailable for October 19th and 20th and likely for the rest of the duration of the trial.
Did you already retire, do you even have time to go?
Great to see you posting again Nats! And thanks for seeing how this goofy story unfolds....
Btw, will Soto become the 1st to get a $500 million contract?
So what's going on in Rop again?
I appreciate your enthusiasm but we thought we had this travesty resolved going into the USSCT in Collins, but victory was elusive. Always hard to tell what a Jury/Judge is thinking or how they are going to rule.
We'll see what happens.
Any unilateral return of our stolen economic rights by the Executive Branch will likely be criticized by members of the opposing political party and having a Jury make the decision alleviates that concern, it also takes the pressure off of the federal Judges whom we are asking to return 100's of billions in ill gotten gains from the same Paymaster that signs their paychecks.
The Rules of Federal Evidence only allow certain documents, testimony, and other information to be presented to the trier of fact, in this case a Jury.
Look for Uncle Suggy during Voir Dire to strike any member of the prospective Jurors who even have a mere hint of a financial background.
They are probably looking for the youngest, poorest, least educated Juror who hopefully for them has no clue about financial institutions but instead would rather enrich Uncle Suggy at the expense of the 'evil hedge fund guys'/mortgage banksters
Just a guess.
Also, after 3 hours of expert financial testimony, it may be difficult for the average Jane/Joe not to be bored out of their skull and have what these highly paid experts say make any sense to them.
Jim Parrot's deposition testimony evidence will be available for the Jury. Plus the CFO'S of Fannie Mae and Freddie Mac advising the Gubmint of the upcoming Golden Years ahead.
Is the writing on the Wall for Uncle Suggy or is he going to pull another rabbit out of the hat?
"Prof. Dharan will testify regarding
these topics and his economic and historical analysis supporting his conclusions that:
i. The Net Worth Sweep could not reasonably have been viewed as necessary to avoid
insolvency or other significant financial harm to Fannie Mae and Freddie Mac at
the time of the Third Amendment;
ii. The Net Worth Sweep could not reasonably have been understood as advancing the
purpose of restoring Fannie Mae and Freddie Mac to a sound and solvent financial
condition;
iii. The Net Worth Sweep could only reasonably have been viewed as a means to
transfer value from shareholders to Treasury and to financially weaken Fannie Mae
and Freddie Mac;
iv. The full restoration of the value of the deferred tax assets (“DTAs”) by Fannie Mae
and Freddie Mac in their respective balance sheets so shortly after the Net Worth
Sweep further makes clear that the Net Worth Sweep was unnecessary; and
v. The restoration of the DTAs vastly increased Fannie Mae’s and Freddie Mac’s net
worth and further foreclosed any risk of insolvency or a circular draw. Fannie Mae
and Freddie Mac had evaluated the restoration of the DTAs prior to the Net Worth
Sweep, and even the possibility that the DTAs might be restored undermines any
suggestion that the Net Worth Sweep was justified.
Prof. Dharan’s direct testimony should last approximately three hours."
"The Death Spiral was real my friends, we had to protect the taxpayers 'investment'", there's a BIG LIE that they will need to cover up.
Another anticipated approach by the clowns in Gubmint will be to say in essence, "Do you want to enrich the 'evil hedge fund guys' or yourself, since we are all taxpayers."
"Pursuant to the implied covenant of good faith and fair dealing,
Fannie Mae, Freddie Mac, and FHFA were obligated not to take actions that were arbitrary and
unreasonable in a manner that violated the reasonable expectations of shareholders. Plaintiffs
assert that Defendants’ decision to enter into the Third Amendment violated the implied covenant
and deprived Plaintiffs and members of the classes of the benefits of their bargain, i.e., their ability to receive dividends and a liquidation preference, and thereby caused the Plaintiffs and members
of the classes to suffer billions of dollars of damages."