Tornado Alley (PROG)

[SilverSurfer]

Congress Passes Laws, BO ignores or breaks them......

"President Barack Obama may be breaking his Obamacare law by delaying its tax penalties on employers that don’t provide health care to employees, according to GOP leaders. The question comes in the days after Obama’s deputies’ June 2 announcement that employers will get a one-year holiday from the federal tax penalties included in the massive Obamacare law.

Administration officials haven’t explained their legal reasoning, and they haven’t scheduled any public briefings to explain the move."


http://dailycaller.com/2013/07/05/gop-obamacare-delay-may-be-illegal/

"The government bullied and coerced the companies' boards of directors" into consenting to the takeover at the expense of property rights, according to the complaint.

"The companies' willingness to continue providing liquidity to the mortgage markets on a large scale was crucial to the recovery of the devastated home market and the broader economy," lawyers for the plaintiffs wrote. "The government took control of the companies to make sure this happened on its terms, completely ignoring the loss of rights and economic value it caused to the shareholders."

Leading up the government takeover, Fannie Mae's and Freddie Mac (FMCC)'s "financial status did not warrant the imposition of conservatorships," the shareholders said in their complaint. They argue that neither company satisfied any of 12 financial and other criteria for a takeover outlined in the Housing and Economic Recovery Act of 2008.

The government forced Fannie Mae and Freddie Mac to delist their shares, terminate shareholder meetings, assume additional subprime assets and "accept tens of billions of dollars from the Treasury," according to the complaint. "In exchange, the companies were forced to grant the Treasury unprecedented and usurious cumulative dividends of 10 percent to 12 percent."

Now that the firms are profitable, "it's reasonable to expect" there will be more lawsuits like this, said Tim Rood, a former Fannie Mae executive who is now a managing director at Collingwood Group LLC, a financial services consulting firm based in Washington.
http://www.americanbanker.com/syndication/fannie-mae-shareholders-challenge-u-s-takeover-in-suit-1059752-1.html