Fannie Mae-No Politics (FNMA)

[rosen62]

They did go for the jugular.

Which denotes an all-out-defense/attack and a weak hand at the same time. If the government does not succeed in any of its points for dismissal there is not much left, my view.

Their strongest point appears to be the "ripe" issue. However, Richard Epstein has already counter-argued that the whole point of a lawsuit is to stop a negative consequence before it accomplishes its damage, which many times cannot be undone. This anticipatory attribute of a lawsuit claimed by Epstein could potentially undo the government's last point.

It's true that there's a prior ruling by which Treasury has been seen by courts acting in the interest of a shareholder, thus commercial relationship. But trying to transfer any fault to the FHFA is disingenuous. Imagine Buffett rescuing Goldman in exchange for a punitive dividend plus warrants (which he got and also stated for the record it's the way to go when helping firms in much trouble) and later on, Goldman of its own volition hands out to Buffett not just the mutually agreed dividend but all of its profits and then decides it's time to shut doors... all because Warren is so good.

Sure. It's just a commercial relationship. Happens every day!