Freddie Mac (FMCC)

[FOFreddie]

Thanks for the reply clarencebeaks21.

I did not know about the choice of law issues with the implied covenant that you highlighted. Thanks for sharing. You are probably right regarding the summary judgement - I have always thought of this as being related to the implicit fair dealing for the public securities markets but I dont think that was in the pleadings right? Sounds like Judge Lamberth will have to decide to impute Delaware law or not?

There has to be some reason why they sold all of the FNMA and kept FMCC and we will probably get a better understanding this quarter. It is my understanding that all the tax loss selling has to be done by Oct 31 so we should know by the end of the year. Perhaps it is the potential outcome of the Lamberth case but when will we know that outcome? Will will probably know soon if summary judgement is granted?

Do you think Judge Lamberth may just stay his case once the Cert petition is filed until SCOTUS decides to take up the appeal or not?