Fannie Mae (FNMA)

[Robert from yahoo bd]

The opening statement of Hashim on behalf of the defendant, 1st paragraph, saying that the fixed amount owed by the gses was simply a renegotiation of a fixed obligation to a variable net worth sweep:

"In the Third Amendment, FHFA, acting
as conservator of Fannie and Freddie,
renegotiated the enterprises' financial
obligations to Treasury by replacing the
enterprises' multibillion-dollar dividend and
fee obligations with a variable dividend tied to
their net worth. The conservator eliminated any
risk that the cycle could continue where the
enterprises' obligations to Treasury would
themselves cause draws from Treasury's capital
commitment."

Of course then Hashim adds in further bullshit about the bogus "death spiral".

We all know the CONSERVATOR shall under HERA preserve and conserve its wards assets, but according to Hashim (3rd paragraph of his opening argument) it's only a may:

"The
conservator acted well within its authority in
deciding that the renegotiation of the
enterprises' financial obligations may have been
appropriate to preserve and conserve Treasury's
capital commitment. The shareholders cannot
second-guess the wisdom or motives behind that
business judgment."

Hashim just kept piling it higher and deeper, but at this stage of the litigation, it is uncomfortably obvious to the defendant that they have finally, despite all their unlimited resources and power been cornered.

I am looking forward to this ruling by the SCOTUS. This is my 15th post of the day.