A non-cash activity, so in essence the FHFA gave away the companies for free with no cash added on to the balance sheet? A verbal transaction. Amazing!
JUSTICE SOTOMAYOR: Quote: "I just want to make sure that I get the gist of your argument, and I think I have it right. I know you and the shareholders disagree on whether this deal had a reasonable cause, but let's posit a deal that didn't. For no rational base -- reason, the FHFA sold all of Fannie and Freddie's assets in exchange for one dollar to itself. It did exactly what Justice Breyer said. It nationalized things. It nationalized the company. Your position is that there is no court review of a decision by the FFH as conservator that could give shareholders the right to challenge their action?” End of Quote page 19
“FHFA sold all of Fannie and Freddie's assets in exchange for one dollar to itself.”
No Your Honor, the illegal contract was never consummated, the Treasury paid us nothing.
In addition:
Your Honor, The Senior Preferred Stock Purchase Agreement is not a law: The SPSPA is an illegal contract: The Charter Act is the Law.
SUBSECTION (g) TEMPORARY AUTHORITY OF TREASURY TO PURCHASE OBLIGATIONS AND SECURITIES; CONDITIONS.— EMERGENCY DETERMINATION REQUIRED. Page 16
Under this subsection the FHFA / Treasury would have to prove, 'What was the Emergency'...
(And this will open the door for the plaintiffs to bring out the forced write down of the deferred tax assets, treasury's charge of an illegal commitment fee, violated the law by not adding the liabilities onto the national debt, neither entity met any of the twelve conditions for conservatorship spelled out in the newly passed HERA legislation, 5th amendment, 14th amendment, etc...)
There was no 'Emergency.'
FHFA freely admitted the companies were adequately capitalized, evidence the companies exceeded capital requirements absolutely no need for emergency funding.
SECOND QUARTER CAPITAL RESULTS
Minimum Capital Fannie Mae’s FHFA-directed capital requirement on June 30, 2008 was $37.5 billion and its statutory minimum capital requirement was $32.6 billion. Fannie Mae’s core capital of $47.0 billion exceeded the FHFA-directed capital requirement by $9.4 billion.
Freddie Mac’s FHFA-directed capital requirement on June 30, 2008 was $34.5 billion and its statutory minimum capital requirement was $28.7 billion. Freddie Mac’s core capital of $37.1 billion exceeded the FHFA-directed minimum capital requirement by $2.7 billion.
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