Fannie Mae (FNMA)

[Robert from yahoo bd]

Latest from TH: "Jack: To your question of “is there enough” evidence in favor of the plaintiffs in the APA case, if you haven’t already I suggest you read the amicus curiae brief I submitted to the Court (linked in the current post). I believe you will see that the net worth sweep was the culminating step of a series of actions initiated by Treasury to bring Fannie and Freddie under government control for policy (and ideological) purposes, while it was publicly claiming to be rescuing them to protect the taxpayer from the consequences of their failure. As I’ve often said elsewhere, the events and activities I detail in the amicus are inexplicable if this had been a true rescue of the companies, but make perfect sense in the context of a pre-planned takeover. The net worth sweep occurred because Treasury never thought Fannie and Freddie would survive long enough–because Congress was expected to replace them with an alternative more to the liking of the banks and their allies– for all of the estimated and artificial losses put on the companies’ books by FHFA to come sloshing back onto their income statements, as they began to do in 2012. Treasury and FHFA concocted the sweep to prevent Fannie and Freddie from retaining these earnings as capital, and calling into question whether their booked losses had been real in the first place. And if this evidence weren’t enough, we have the documents produced in discovery in the Fairholme case in the Court of Federal Claims that show Treasury officials admitting to themselves and others exactly what they were doing, which was the opposite of what they claimed publicly.

Were SCOTUS to remand this case to the District Court for the Southern District of Texas, it will not “play either way”–the government will lose, and it knows it."

http://www.supremecourt.gov/DocketPDF/19/19-422/154595/20200922104336414_Amicus%20Brief%20of%20Timothy%20Howard%20for%20Filing.pdf