Media notice as follows:
Fannie Mae Shareholder Lawsuit Against US Treasury?
Concerned Shareholder
10:41 AM
To: elrushbo@eibnet.com
Rush Limbaugh,
I have been listening to your program awhile about the tactics of the current administration. I think there is a topic that you may not be aware of. Currently the shareholders of Fannie Mae and Freddie Mac, two privately held companies, are locked in a legal battle with the US Treasury and the Federal Housing Finance Agency concerning the takeover and current conservatorship on these two entities. They were taken over in 2008 and put into conservatorship without shareholder input, injected with $187 Billion dollars of taxpayer capital to keep them solvent (Government’s excuse) which the companies did not ask for, required to give the Government 10% dividends for the monetary aid (which they had to borrow from the Government to be able to give it back to them in the form of a dividend), required to give the Government 79.9% warrants to purchase common stock in the company at any time up until the year 2028(which if exercised would make the Government an 80% shareholder in the Companies), and finally in August of 2012 when the Companies were starting to show a profit, the FHFA, which was organized by the Government, and the Treasury bilaterally agreed to a 3rd Amendment to sweep all the profits of the Companies into the Treasury except a token amount to keep them operating. This last item, the 3rd Amendment sweep , is the source of the shareholder lawsuit. As a result of the sweep, Fannie Mae and Freddie Mac have paid back all of the $187 Billion the Government has infused into the companies plus about $20 Billion extra for the Treasury to do with however they please( ie to cut the deficit). However, the Government contends that this money was only a return on their investment and that the two companies still owe $187 Billion. Their currently is no mechanism for the companies , in conservatorship, to pay back this money, since the Government continues to sweep all profits and only lets the companies have a token amount of money to continue to operate. This arrangement does not leave the companies any money to recapitalize, grow, and avoid another bailout. The Government is dooming these companies to fail again in another crisis.
As a prelude to the shareholder lawsuit, an internal email was discovered by The New York Times between a subordinate and Tim Geithner, Treasury Secretary, in about 2009 after commencement of conservatorship, that stated that the shareholders would not receive any future profits from these companies. This email was not revealed to the public (ie Securities Fraud) which companies are suppose to reveal because this information would be relevant to shareholders buying and selling a stock.
The shareholder lawsuit is currently in discovery in Judge Sweeney’s courtroom at the Federal Court of Claims. The shareholders are seeking to end the third amendment sweep and remove the companies from conservatorship so they can recapitalize. The discovery is to determine what the motives of the Government are with respect to conservatorship and why it continues. The purpose of conservatorship is to “Conserve and bring to a solvent condition”. The Government so far is trying to keep these companies under their thumb.
Just this past Friday, May 30 the Government filed a protective order to prevent discovery into their motives for conservatorship and plans for exiting conservatorship. This has all the markings of “Coverup” with the corrupt Obama administration.
For further info, you can access investorsunite.org or restorefanniemae.org to get background on this concern.
I hope that your program will bring this issue to the public so the Government will be put on notice. If you decide to do this, please let me know so I can inform other investors, investorsunite, and restorefanniemae of your program’s air times.
Concerned Shareholder
