Fannie Mae-No Politics (FNMA)

[Demar]

Washington Federal's Response to Government's Motion To Dismiss

Posted by bryndon.fisher on google FNMA board.


"The very nature of the conduct alleged in the Complaint supports that FHFA likewise has such a conflict of interest here. Namely, as described in Section IV(A)(1) above, FHFA imposed and has used the conservatorships to accomplish the Government’s own objectives rather than preserving the Companies’ assets with a view towards their eventual emergence from conservatorship. No understanding of conservatorship would include actions that destroyed the value of the Companies and siphoned their control and profits to the Government."


"In contrast, the various Government actions challenged by Plaintiffs went far beyond anything authorized in HERA. Instead, FHFA, acting as conservator and regulator, and Treasury, acting as loan shark, took the unprecedented and unforeseeable move of placing the Companies into conservatorship, saddling them with largely unnecessary debt, using them parasitically to protect unrelated financial institutions, and then steering all of the Companies’ profits to the Government's coffers indefinitely and without regard for the debts imposed upon the Companies by the Government itself - all at the expense of the Companies' shareholders. Each of these acts, which were part of a broad governmental scheme, had nothing to do with the statutorily-defined purpose of a conservatorship - to preserve and conserve the assets of an allegedly troubled institution - but were rather orchestrated to serve a wholly unrelated purpose, namely creating stability in the greater economy and providing Treasury with needed funds."

Link to response:
https://docs.google.com/viewer?a=v&pid=forums&srcid=MDUxNDQwNjExMTIwMzQzNjc3NDIBMTA2MjY0NjIzMzA1MjMyOTg2MDEBZ21GUVY5WW5VYzhKATQBAXYy