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The US Treasury and the Obama administration were pressing hard to deliver Mortgage Forgiveness in 2011 and 2012.
But for Executive Privilege and National Security Exemptions to Discovery we would likely have seen the extensive analysis by the FHFA and the US Treasury as to its related costs to the GSES AND the projected pro forma profitability projections.
The August 17, 2012 Net Worth Sweep was a total Banana Republic move by the US Government and they want to keep it hidden from Shareholders and the American People.
The US Government continuing to maintain that the NWS was a legitimate way to preserve and conserve the GSES is ludicrous and the 12 random DC Jurors figured this out pretty quickly.
These federal agencies (aka the 4th Branch of Government) are out of control and need to be reigned in.
That's part of the madness involved with suing the Gubmint for federal government agency overreach!
The federal agencies know that the Gubmint can hide behind it so that emboldens our unaccountable 'dear leaders' to say things like, "We're Salting the Earth with the Shareholders Carcasses. They will figure this out real quick."!
I have a limited knowledge of Class Action Cases but apparently there is often a lead Plaintiff that perhaps initiates the case prior to class certification by the federal court.
Here, perhaps Berkeley Insurance (and/or BB) was the lead Plaintiff and the reason they said to exclude Fannie was because they only hold mostly Freddie Mac JPS and/or common and Fannie Mae JPS.
The "contract" was the retainer agreement between the lead Plaintiff and the law firm and that contract excluded the law firm from including Fannie Mae Common.
Since they were "bankrolling" the initial Litigation prior to Class Certification then that could explain why the Fannie Mae Common was excluded.
Pure speculation on my part.
Executive Privilege and National Security Exemptions to Discovery do have some Exceptions and it overwhelmingly appears that the federal government is afraid of being forthcoming here.
If internal UST memos and intra governmental memos between UST and the White House administrative and/or the FHFA staff show (or a trier of fact could infer) that the purpose of the August 17, 2012 was other than publicly stated that could be "yuge".
Well, technically Collins said that it was an action that the FHFA could take under the Incidental Powers of HERA.
A different question presented may be better: Can two federal agencies (here the US Treasury and the FHFA) act together to Nationalize two private corporations?
Was it within the power of two federal agencies (here the FHFA and UST) to "Wind down" the GSES and prevent them from "ever becoming private again"?
12 random DC Jurors saw the theft, not sure why some of the federal Jurists can't see it.
HeeeeHeeee! Lot's of reorgs involving $8B/Q in NET INCOME producing companies? When's the last time you did that?
After watching 6 weeks of the 2 trials, it's easy to ascertain that the Government is hiding some very uncomfortable information from us and the more sunshine we can cast on it the better.
The decision to "Wind down" the GSES (on the cusp of world record beating profitability) via the August 17, 2012 Net Worth Sweep was a mistake on the part of the Government.
There's been an infestation of late on the board, should I call pest control? HeeeeHeeee !
Let me sum up their arguments for you:
1. The dilution solution
2. The administrative bankruptcy
3. The instant recap
FULCRUM SECURITY:
FULCRUM: ful·crum
/'fo?olkr?m,'f?lkr?m/
noun
the point on which a lever rests or is supported and on which it pivots.
a thing that plays a central or essential role in an activity, event, or situation.
"research is the fulcrum of the academic community"
SECURITY: se·cu·ri·ty
/s?'kyo?or?de/
noun
1.
the state of being free from danger or threat.
"the system is designed to provide maximum security against toxic spills"
Similar:
certainty
safe future
assured future
safety
reliability
dependability
solidness
soundness
2.
a thing deposited or pledged as a guarantee of the fulfillment of an undertaking or the repayment of a loan, to be forfeited in case of default.
Similar:
guarantee
collateral
surety
Royce was busy yesterday, handing out millions of dollars to victims of Gubmint Unconstitutional overreach, from today's WP:
"U.S. District Judge Royce C. Lamberth gave preliminary approval to the settlement agreement on Monday after years of litigation. Lamberth had previously ruled in September 2021 that D.C. arrested, jailed, prosecuted and seized guns from six people "based on an unconstitutional set of laws" and violated their Second Amendment rights.
The laws - a ban on carrying handguns outside the home and others that effectively banned nonresidents from carrying guns at all in D.C. - have since been struck down in federal court. They were part of a "gun control regime that completely banned carrying handguns in public," Lamberth wrote in the 2021 ruling.
Now, D.C. will pay a total of $300,000 to the six plaintiffs and $1.9 million in attorneys fees, with the majority of the rest of the money set aside for more than 3,000 people estimated to qualify for the class-action.
The D.C. attorney general's office declined to comment. Attorneys for the six gun owners did not immediately respond to requests for comment.
The settlement agreement follows litigation in several major federal court cases over the past 15 years that have led judges to strike down highly restrictive D.C. gun laws, slowly leading to more legal gun ownership in a city where illegal weapons have dominated.
For years, most D.C. residents could not even own guns in their homes, let alone possess them in public. But that changed with the seminal 2008 Second Amendment Supreme Court case District of Columbia v. Heller, which invalidated D.C.'s handgun ban.
A succession of court rulings chipped away at other restrictive D.C. laws. In 2014, a federal judge in Palmer v. District of Columbia struck down D.C.'s total ban on carrying handguns in public and enjoined the District from banning nonresidents from legally registering firearms. And in 2017, a federal judge invalidated D.C.'s requirement that people show "good reason" to obtain a concealed-carry permit - significantly opening the door to more legal guns.
In this case, the six plaintiffs - including four non-D.C. residents - were arrested between 2012 and 2014 on gun-related charges. They filed a lawsuit in 2015.
Those arrested include the lead plaintiff, Maggie Smith, a nurse from North Carolina who was pulled over by D.C. police for a routine traffic stop in June 2014, according to court documents. Smith, who had no criminal record, informed officers her car contained a pistol that was licensed in her home state - for which police promptly arrested her, seizing her gun and taking her to jail, where she stayed overnight."
Kind of a mystery what the attorneys fees and costs will be here.
Here's a recent case, from the 9th Circuit:
"The $182 million in attorneys' fees amounted to 22.5% of the settlement. The fee request was below a 25% benchmark that is employed by courts under the oversight of the San Francisco-based 9th Circuit, the class attorneys said."
"The shareholders' attorneys said lawyers for the defendants "exhausted every litigation strategy in an effort to end the litigation without any recovery for the class."
The plaintiffs' lawyers in a court filing called the settlement "extraordinary" and said they put in about 73,400 hours of professional time in the five-year litigation. They called the $810 million settlement among the largest-ever in the district courts in the 9th U.S. Circuit Court of Appeals."
https://www.reuters.com/legal/legalindustry/twitter-securities-lawsuit-yields-182-mln-fees-plaintiffs-attorneys-2022-11-18/
I haven't heard of any, but the next stop for this case will likely be the US Court of Appeals, then either back to the trial Judge or appealed further up the chain.
I'm pretty sure that Plaintiffs Class Attorneys on appeal will argue that damages from the breach of our Shareholders Implied Contract with Fannie Mae and Freddie Mac should not be limited to a one day drop in share price.
We'll see what happens, as the 15 year CONservatorships continue...
We need your commentary Jog, hang in there, we will see this through!
I'd like to hear what they currently think about the Net Worth Sweep and the 15 year perpetual conservatorships.
Unlike virtually every Board of Directors (pre conservatorships), Fannie Mae and Freddie Mac had one-third or more of their Directors hand picked by the POTUS.
Will the Plaintiffs attorneys appeal? What about Uncle Suggy? Stay tuned for more drama packed episodes of: THE DAYS OF OUR 15 YEAR PLUS CONSERVATORSHIP LIVES:
Compound or simple interest for Fannie Mae JPS, THAT IS THE QUESTION! Of course, the Government Attorneys are arguing ZERO PREJUDGMENT INTEREST!
The Government: "Shareholders will get whatever WE DECIDE to give them and they will be happy!"
"Is this no better than a Banana Republic?", asked one Federal Judge.
Is Mr. Market putting a premium on Fannie Common vis-a-vis Freddie Common?
https://finance.yahoo.com/quotes/fmcc,fnma,fmckj,fmcki,fmccm,fmcck,fmcct,fmcci,fmckk,fmccg,fmcch,fmccl,fmccn,fmcco,fmccp,fmccj,fregp,fmckp,fmccs,fmcko,fmckm,fmckn,fmckl,fnmap,fnmao,fnmfo,fnmam,fnmag,fnman,fnmal,fnmak,fnmah,fnmai,fnmaj,fnmas,fnmat,fnmfm,fnmfn/view/v1?guccounter=1
Fannie Mae and Freddie Mac perform a vital service to the US Government, American Families, and the entire US Housing Finance Market.
So what does the US Government do? Punish the Shareholders by Nationalizing their Corporations for a decade and a half and COUNTING!
I'd be nice to hear from the ACTUAL Fannie Mae and Freddie Mac individuals who were sitting on the Board of Directors in August and September 2008.
But, they probably signed away their silence to the Government in return for immunity from lawsuits.
Still, THEY KNOW what happened.
Yes, it's Freddie Mac Common and Preferred, and I'm guessing that Freddie Mac is incorporated under in Virginia and I believe that the prejudgment interest Virginia Statute calls for the Jurors to decide on prejudgment interest or 6% simple interest.
Fannie Mae is incorporated in Delaware, I believe and therefore the Delaware prejudgment interest Statute applies.
Pull up a copy of the Jury Verdict Form, where the Jurors filled out and answered the Questions presented, it will tell you whether it was Freddie JPS AND common or just Freddie JPS. I looked on Glen's Fannie gate site but couldn't find it.
Would Fannie Mae and Freddie Mac as Corporations and the Conservatees be able to sue their Conservator for bad acts and unfair dealing by the FHFA if they have to pay the damages from their corporate balance sheets?
When 12 random DC JURORS (8 from the 2nd trial, 4 from the 1st trial - who work indirectly or directly for the federal government), quickly return a verdict against the Government for unfair dealing after deliberating over all the evidence, it shows bad faith on the federal government here and our 'dear leaders' may want to consider that when they decide to move forward.
The fact is that the August 17, 2012, Net Worth Swipe, was an abusive and coercive use of federal agency governmental power.
Seemed like Hank Paulson was livid about the whole Private Label MBS implosion and was looking for some revenge.
BO had his Treasury Secretary take revenge on Fannie Mae and Freddie Mac on August 17, 2012, didn't he?
HeeeeHeeee! !
You know the Fulton county ga prisoner #P01135809, thinks that was a MAJOR SOCIALIST MOVE!
What do you think?
In the Lamberth trial, it's an Implicit Contract (i.e., unwritten) - it's a given that Shareholders shouldn't expect their Corporations (here, the FHFA in its acting capacity as the Conservator) to give away ALL their profits into perpetuity. The Government argued, no, the Net Worth Swipe was foreseeable. The Jurors didn't buy the Government's arguments.
I believe in most contract disputes, the courts only award Litigation Expenses and Court Costs to the prevailing party if there is a provision in the Explicit written contract that awards it. Although I could be wrong and I'm not certain about what the rules are in Class Action Cases.
We've only waited 15 years, this guy waited 31 years!
That's right, it's very rare for a Jury Verdict to be overturned on appeal, and the damages here are pretty minimal for the Government considering how the Government stripped away ALL the economic rights of the Shareholders here.
So, approximately end of October.
Seems likely that this case will end up on the 5th Floor of the US District Courthouse, the US Court of Appeals, anyway. Kind of par for the course.
I thought it might have been signed when I spotted a brand new custom deluxe electric skateboard by a bearded man on a beach in Miami with a Conk Shell in his other hand !
No problem, we're all trying to navigate through this uniquely bizarre 15 years of conservatorships by the government of our companies!
I heard that the Net Worth Sweep was legit because of the "DEATH SPIRAL", is that true? Our 'dear leaders' and my Uncle Suggy would NEVER deceive or trick us, right?
That's right, Royce hasn't signed off on anything yet.
Eventually he'll figure out what he wants to do.
UST/FHFA: We'll do a recap and release some magical day, but now, "We're waiting for the US Congress to fix the broken American Housing Finance System".
The Status Quo and Inertia what's not to like for the US Treasury and FHFA?
FHFA funding totally paid for by the twins into perpetuity. Sandra can request "whatever we feel is reasonable" for an annual budget
UST & FHFA continues having 100% control of the GSES into perpetuity!
Amerika, my kinda place !