Replies to post #13598 on Fannie Mae Preferred S (FNMAS)

[JosephS]

I am no attorney but it looks like most of the defense is going to be around the flavor of:

"I did the reasonable thing by giving up all the profits because the gov't gave us this great compensation of a future backstop some day even though we knew full well that w/o FNF there is no mortgage market"

It looks like this is going to all center around the reasonable person argument on the 3rd PSPA.

IMO, it isn't reasonable to give away all future profits forever for a backstop when the implicit backstop was already there!!!

Not sure how anyone in their right mind will believe that they didn't know the profits(and hence the DTA) would be recognized. Hell, the guys on here(YMB) were talking about it in 2010-2011, right?

How can people "in the know" claim they didn't know and that makes it alright?

I can't help but think of Ollie North in the Iran Contra Affair?

Question at trial:

Prosecutor: Did you arrange an exchange of weapons for hostages?

Ollie then leans in and speaks to his attorney for 30 seconds, pops his head up and says:

Ollie North: I do not recall.

Question after question for what seemed like hours, Ollie did the exact same sequence. He simply couldn't remember.

He got convicted but never served time...

[5bagger]

Ugoletti's declaration states that the 3rd amendment never meant to increase compensation to the Treasury (his own words).

Rosen -

The wording is weird. But, what I think he said was they didn't think 3rd would increase... they *thought* the move would protect them from r-ship and benefit the enterprises in doing so.

Hmmm.

They were in danger of r-ship, so this move was good for GSEs.

Others have it right. He's playing dumb. Treasury and Conservator didn't know about the DTA coming into play, if it ever would, and what the amount would be.

Hmmm.

That is where the judge and any observer can poke holes. After a full year of positive earnings, they would have the option. Ift could be argued that they could have taken it for Dec YE 2012.

Aug. 17th to Dec. 31st ain't that long, and most companies are doing forecasting and planning by August 17th.

Here's what they need to do: DEPOSE THE AUDITORS

Depose the auditor and see if they lie, also.

Any finance person would know of the DTA. The CFO knew.

DEPOSE the CFOs

Ask them if they are aware of what a DTA is? Yes sir.
Are you aware that the DTA was removed in 2008? Yes sir.
Did you keep a running log during the years 2009-2012 to determine the accumulated losses? Yes sir.
Did you have on-going discussions with the auditor about when these could or would be used? Yes sir.

These would all be "Yes sirs"

Heck, this mangy group has been chanting DTA since 2008. It was the first brick to fall from the building, as everything crumbled from the misfired bazooka!