Mr Cooper Group Inc (COOP)

[Royal Dude]

Appx106¶53. The Companies had on their books “$50 billion in capital,”
Senator Isakson added, “when the requirement is to have $15 billion, so
they are sound.” Id. Similarly, after HERA passed and before the
conservatorships were imposed, FHFA and its predecessor agency stated
repeatedly—along with Secretary Paulson—that both Fannie and Freddie
were “adequately capitalized.” Appx107-109¶¶54-57.
1. The Government coerced the conservatorships to
create a national warehouse for toxic mortgage debt
effectively financed by the Companies’ shareholders.
On September 6, less than two months after HERA’s enactment,
FHFA and Treasury blindsided the Companies by placing them into
conservatorships and seizing control from the stockholders. Appx89-90¶7;
Appx112¶66.4
4 In a typographical error, FAC paragraphs 66 misstates that the
conservatorships were imposed on September 7.