Fannie Mae Preferred S (FNMAS)

[Zargis]

It is of my personal opinion that there are enough public documents already available that proves the government agency FHFA, is, performing as a government agency based on their own statements even to congress and various other documents... such as the entire 'Common Securitization Platform'.

That decision was OBVIOUSLY not a creation of the GSEs own consideration, and, ties into them both. It is also a very current example - that is so far, failing. (Additionally, the FHFA has publicly released information stating that they (the FHFA) has made the CSP using the GSEs resources. (effectively)

here is a few example news articles and documents: (with only a few minutes of searching)
http://dsnews.com/news/05-21-2014/audit-common-securitization-platform-finds-organizational-problems

“FHFA assumed, but did not verify, that developing the CSP would be more cost-effective than each Enterprise separately pursuing expensive upgrades to their back office systems. In addition, FHFA envisioned the CSP as a potential market utility and a way to maintain liquidity in the mortgage market that could outlive the Enterprises’ current structures,” the FHFAOIG said.

http://fhfaoig.gov/Content/Files/EVL-2014-008.pdf

See page 3, near the top:

FHFA has also established an independent corporate entity, Common Securitization Solutions, LLC (CSS), that will develop, build, own, and operate the CSP. However, CSS, which is jointly owned by the Enterprises, does not yet have a chair for its Board of Managers or a chief executive officer. FHFA recently appointed two senior executives for CSS.

I believe the saying is... "Straight from the horse's mouth".



What you really should consider is this; if you are a plaintiff in a case of this magnitude, and, you have BILLIONS on the line, and, you already have some pretty sizeable evidence of a takings or other claim, and you have billions to sit on and relax for years already - in cash, then; why not go through with a discovery and hopefully find more incriminating documentation than the government wants to be found.

Even if documents are presented that do not show the government is 'controlling the corporations', well then, what if those documents prove another point though... or tidy up other arguments fairholme's lawyers have already prepared.


To me - they are looking for any possible random juicy details that - the government mistakenly gives to them. Having to go through thousands of papers by hand and determine what they are willing to give up or hide, well, that is quite tedious and... some small tid bit will be missed - that could be catastrophic.

I am not sure if beyond a stop of the net worth sweep and a possible return of funds to the companies directly, if any lawsuit could really 'win' - i.e. shareholder damages and so forth. There is so much time that has passed and so many other various issues that have occurred that it makes 'settling' or a mandated court decision with a 'win' difficult since there are so many other lawsuits already in progress and obviously so many share holders and indeed- different classes of share holders (i.e. commons, preferred etc.)

For example, if one suit wins and attains a damage award in money(s) from the government or FHFA, how is that split appropriately amongst share holders? That decision will be difficult since so many have been wronged and in different ways. (i.e. some lost money on their shares from $50+, where as others are at a current gain etc. Different complaints in part)
I understand that there are legal rules regarding awards around stock complaints, however, I am suggesting a judge would find it difficult to determine a verdict - that everyone complaining agrees with.

What I am getting at is, what is the real point of the discovery? Because, to me, it is not all clear that the apple dangling in front of the world, is indeed, an apple at all.

Be well,

-Zargis