there is some filing that just hit the wires..
"Among the newly released documents, emails sent by James Parrott, a White House official who was intimately involved in the development and rollout of the Net Worth Sweep, confirm that the Net Worth Sweep was in direct contravention to FHFA’s duties as conservator. For example, on August 17, 2012—the same day the Net Worth Sweep was enacted—Mr. Parrott indicated in an email exchange with Congressional staff that the purpose of the Net Worth Sweep was “ensuring that [the Companies] can’t recapitalize” by “clos[ing] off [the] possibility that they every [sic] go (pretend) private again.”
At same day, Mr. Parrott told “fellow traveler” Peter Wallison of the American Enterprise Institute that the Net Worth Sweep would ensure that the Companies “can’t repay their debt and escape” and said that Mr. Wallison’s comments to Bloomberg News were “exactly right on substance and intent.”
Earlier that day, Mr. Wallison had told Bloomberg News that: [t]he most significant issue here is whether Fannie and Freddie will come back to life because their profits will enable them to re-capitalize themselves and then it will look as though it is feasible for them to return as private companies backed by the government . . . What the Treasury Department seems to be doing here, and I think it’s a really good idea, is to deprive them of all their capital so that doesn’t happen/"
"Mr. Parrott tellingly described the Net Worth Sweep in an email to his team at Treasury as a “very high risk exercise” and a “policy change of enormous importance.”
"In July 2012, a Treasury official observed that releases of loan loss reserves could “increase the [Companies’] net [worth] substantially. And Treasury’s number one question for the Companies when it met with their senior management on August 9, 2012, was “how quickly they forecast releasing credit reserves.”
"It is thus apparent that Defendants knew that Treasury would reap massive, windfall profits from the Net Worth Sweep and that this fact—together with a desire to permanently prevent the Companies from rebuilding capital and returning to soundness and solvency—was the true rationale for the agency action at issue in this case."
"as one Fannie Mae executive commented during a July 2012 board meeting (the minutes of which were forwarded to FHFA officials), the “next 8 years” after 2012 were likely to be “the golden years of GSE earnings” and strong profitability. FHFA00047889 (Exhibit 12, A063)."
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