Fannie Mae-No Politics (FNMA)

[Wise Man]

5th Circuit, Collins case and Fairholme's atty, again?
More court news until the attorney for Berkowitz, the omnipresent (Robinson, Fairholme, Bhatti, Rop, Collins) almighty David Thompson, achieves "the government has to come to me" at a negotiation table, he pointed out in a Conference Call hosted by Pagliara. The endgame of the abuse of court process and coverup of the laws in the Fanniegate conspiracy by the hedge funds.
A 3 judge panel in the 5th Circuit will learn about this case again, when judge Willett (prior enbanc hearing. 5th Circuit) and Justice Alito, seem sycronized when the former explained what "authorized by this section" was about (any action within the enumerated powers) in the FHFA-C's Incidental Power, and the latter highlighted the prerequisite of the rehabilitation of FnF, which is the FHFA-C's Power in question: put FnF in a sound and solvent condition.
It's called FHFA-C's Rehab power for a reason.
An explanation about what judge Willet and Justice Alito actually said, was posted yesterday.

When the Fanniegate scandal seemed resolved, with the evidence of a Separate Account plan by rogue officials, now, the Collins case returns to the 5th Circuit Court of Appeals seeking damages for the unconstitutionality of the FHFA director. The "for cause" removal restriction is constitutional to begin with, as explained by the law professor Nielson, who represented the FHFA when he was appointed by the Supreme Court, arguing that the Charter Act and the FHEFSSA, make the FHFA director have LIMITED POWERS, thus, it doesn't break the Separation of Powers doctrine. A Charter Act concealed by the parties all along.
The dramatic part in this case is that the Fairholme's attorney seeks damages based on a Financial Statement fraud in FnF (the SPS increased for free since December 2017 are missing on the Balance Sheets, to evade posting the offset with reduction of Retained Earnings -Core Capital- that would slam their slogan of "FnF continue to build capital"), orquestrated by FHFA's Sandra Thompson, who arrived to the FHFA in March 2013 as Deputy Director in charge of Capital policy ($402 billion capital shortfall over Leverage Capital requirement as of end of June, 2023) and behind the "blame DeMarco" rhetoric spread by her Hedge Funds guard.
The attorney uses this Financial Statement fraud to claim that the "unconstitutional" removal restriction prevented that the current scenario where the UST gets rich with the gifted SPS every quarter and, at the same time, FnF are recapitalized, from happening sooner, as Mel Watt would have been fired before.

That wonderland scenario is just a bunch of lies, based on the Financial Statement fraud in FnF. The adjusted Core Capital remains stuck at $-194 billion every quarter due to the offset mentioned with the gifted SPS, once they are posted on the Balance Sheets.
The same offset with reduction of Core Capital was seen with the initial $1 billion worth of SPS issued for free on day one of Conservatorship, debited from the Additional Paid-In Capital account (Common Equity too), now exhausted.

Can you imagine that this same attorney, at the same time he is concealing this Financial Statement fraud seeking damages in Collins, later is trying to settle this fraud directly with FnF confidentially, knowing that Fairholme and FnF are parties in the Lamberth's court, and awaiting the release from Conservatorship, when the management recovers its powers for this settlement?
Without powers (transferred to the conservator), FnF can't be parties in any legal proceedings. A telltale sign that the FnF management and the FHFA are eager to settle their fraud confidentially.