Replies to post #86606 on Fannie Mae-No Politics (FNMA)

[obiterdictum]

Agreed. The Perry Capital lawsuit seeks no damages. All it seeks is to rescind the Third Amendment, ensure that none of its provisions are implemented, payment of costs and attorney fees associated with bringing the case to and through court and whatever the court may add in for relief.

That would put the GSEs back to the Second Amendment and perhaps further stipulations by the deciding judge.

It can easily be settled out of court if the US Treasury is willing to give up the easy GSE billions involved in ending the Third Amendment (say 66.3 billion under the 3rd vs. 4+ billion under the 2nd amendment) that they already factored into the US Budget.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PERRY CAPITAL LLC, for and on behalf of investment funds for which it acts as investment manager,
767 5th Avenue
New York, New York 10153
Plaintiff,

v.

JACOB J. LEW, in his official capacity as the Secretary of the Department of the Treasury,
1500 Pennsylvania Avenue, N.W. Washington, D.C. 20220,

EDWARD DeMARCO, in his official capacity as Acting Director of the Federal Housing Finance Agency,
Constitution Center
400 7th Street, S.W. Washington, D.C. 20024,

THE DEPARTMENT OF THE TREASURY,
1500 Pennsylvania Avenue, N.W. Washington, D.C. 20220,

THE FEDERAL HOUSING FINANCE AGENCY,
Constitution Center
400 7th Street, S.W. Washington, D.C. 20024,
Defendants.

PRAYER FOR RELIEF

95. WHEREFORE, Plaintiff prays for an order and judgment:

a. Declaring that the Third Amendment, and its adoption, are not in accordance with HERA within the meaning of 5 U.S.C. § 706(2)(C); and that Treasury and the FHFA acted arbitrarily and capriciously within the meaning of 5 U.S.C. § 706(2)(A) by executing the Third Amendment;

b. Vacating and setting aside the Third Amendment, including its provisions that sweep the full amount of the Companies’ net worth to Treasury, that prevent redemption of the Government Preferred Stock, and that accelerate the Companies’ dissolution;

c. Enjoining Treasury and its officers, employees, and agents from implementing, applying, or taking any action whatsoever pursuant to the Third Amendment;

d. Enjoining the FHFA and its officers, employees, and agents from implementing, applying, or taking any action whatsoever pursuant to the Third Amendment;

e. Awarding Perry Capital its reasonable costs, including attorneys’ fees, incurred in bringing this action; and

f. Granting such other and further relief as this Court deems just and proper.