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FNMA and FMCC preferreds. In search of the elusive 10 bagger.


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Lukes article links this directly from him: http://www.cnbc.com/2015/08/28/bove-fannie-and-freddie-settlement-near-commentary.html

 

 

White House was probably not aware of what the Treasury and FHFA were doing in the name of executive privilege and without the White House ever seeing the documents in question.

 

Several civil-rights organizations, including the NAACP, according to my sources, have approached the White House requesting some help for low-income households that have been shut out of the housing market by the administration's directives for tighter lending standards.

 

Stated simply: The White House needs Fannie and Freddie to go back to work to do what they were meant to do in the first place – i.e., assist the nation's housing markets to stimulate economic growth. Settling these cases would accomplish just that.

 

 

Voted for the guy twice but really?

 

 

All in the game yo, all in the game. - Omar little, The Wire

 

Edit:

I should be at the bar right now but instead Im here...

 

Joe Light ‏@joelight  4h4 hours ago

White House spox says it’s standard practice for WH counsel to review docs in litigation that references the WH

 

 

Second Edit:

 

Carney and I agree. No way Obama didnt know it. Now i really need a beer.

 

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From Todd

This is the reason for the full court press by the government to keep them hidden and the reason the NYT has filed to have them released…….I would point out here that oddly enough the WSJ has not requested they be released…….like I said before, actions speak louder.

 

Now we also  have to live in fairy tale land to assume a senior partner at a law firm is wholly unaware a client of his firm is embroiled in a lawsuit vs the government that could be potentially worth over $200B in damages……..yeah, that kind of thing is always kept on the DL at law firm partner lunches.

 

Anyone have that full text of the WSJ article?

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Is it just my imagination or has there been a noticeable lack of filings over the past 11 days since 8/21 filings of document 233 (White House counsel requesting access) and document 235 (Sweeney setting September 4th as status conference)?  At the rate filings were being submitted the past few months it seems odd to have very minimal activity over the past nearly 2 weeks.

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A bit surprising the WSJ ran this op-ed given all their negative GSE stuff.

http://www.wsj.com/articles/fannie-freddie-and-smaller-banks-1441308871

 

Fannie, Freddie and Smaller Banks

Edward DeMarco’s plan would effectively hand the $4 trillion secondary mortgage market over to too-big-to-fail firms.

September 4, 2015

 

Community bankers agree it’s time to “Put Fannie and Freddie Out of Taxpayers’ Misery” (op-ed, Aug. 21). However, Edward DeMarco’s plan would effectively hand the keys of the $4 trillion secondary mortgage market over to the too-big-to-fail firms that cratered the housing market to begin with.

 

To prevent another mortgage-backed security meltdown, regulators should require market participants that provide upfront loss protection in the loans they sell to the GSEs to keep equity capital behind those loans. Fannie and Freddie should also adjust the guarantee fees of these entities to prevent them from having a superior price advantage which would drive further market consolidation.

 

Turning over the ownership of the common securitization platform currently under construction would result in the too-big-to-fail cartel controlling access to the platform, forcing lenders to access the secondary market only through the largest aggregators. To prevent this, the Federal Housing Finance Agency should become a part owner of the platform and ensure it is available to all qualified entities.

 

Finally, the FHFA and Treasury Department should use their authority to allow Fannie and Freddie to start rebuilding capital—the only real protection for taxpayers. Bleeding two of the largest financial firms in the country of their capital only to feed the coffers of the Treasury is irresponsible and puts the housing market and taxpayers at risk of another bailout.

 

Reforming Fannie and Freddie can be done, but policy makers should not lock out Main Street institutions in favor of the nation’s largest and riskiest lenders.

 

Camden R. Fine

 

President and CEO

Independent Community Bankers of America

Washington

 

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because this case is in the jurisdictional discovery phase, the court finds that it ispremature to grant at this juncture plaintiffs’ various motions to remove the “protected information” designation from certain deposition transcripts and documents produced during jurisdictional discovery.Consequently,the court DENIES as premature

 

Plaintiffs’ oral motion during the status conference to extend jurisdictional discovery is GRANTED.  Jurisdictional discovery shall be completed by Thursday, December 31, 2015.  The parties shall file a joint status report suggesting future proceedings by no later than Thursday, January 21, 201

 

Because plaintiffs’various aforementioned motions for de-designation of certain discovery materials are denied, consequently, the court DENIESAS MOOTThe NewYork TimesCompany’s motion to intervene and for an order de-designating discovery materials (Docket #177)

 

last but not least

 

Motions to de-designate or unseal, if such a request is madeby a party or a proposedintervenor, will be entertained by the court after the conclusion of briefing of defendant’s motion to dismiss plaintiffs’complaint

 

 

http://online.wsj.com/public/resources/documents/sweeneydocdecision.pdf

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Court Documents Stay Sealed in Fannie, Freddie Case -- Market Talk

 

Last update: 04/09/2015 1:57:43 pm

 

16:57 EDT - A judge in the US Court of Federal Claims today denies motions to make public certain documents and depositions in a case between shareholders of Fannie Mae (FNMA) and Freddie Mac (FMCC) and the US government. The shareholders are challenging the government's 2012 decision to sweep nearly all of Fannie's and Freddie's profits when they make one, but not require dividends when they don't. The plaintiffs in the case, which include mutual fund manager Fairholme Funds, in redacted court filings have said the documents undermine the government's public reasoning for the sweep--namely that government officials were afraid that Fannie and Freddie would need to draw on bailout funds to pay dividends. The decision is a small blow to shareholders, who are also fighting a public relations battle to win over the public and policymakers and perhaps drive the government towards a settlement. (joe.light@wsj.com; @joelight)

 

 

(END) Dow Jones Newswires

 

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I'm not sure why this is being perceived as negative. 

 

because this case is in the jurisdictional discovery phase, the court finds that it ispremature to grant at this juncture plaintiffs’ various motions to remove the “protected information” designation from certain deposition transcripts and documents produced during jurisdictional discovery.Consequently,the court DENIES as premature

 

The part cut off discussed that it was premature until discovery is complete (in other words, "not yet").  And if it's premature to disclose documents to the public then of course it's premature to disclose them to the NYT.  It's not denied with no reason, and Sweeney welcomes future unseal requests per the language below...

Motions to de-designate or unseal, if such a request is madeby a party or a proposedintervenor, will be entertained by the court after the conclusion of briefing of defendant’s motion to dismiss plaintiffs’complaint

 

Extension on discovery...

Plaintiffs’ oral motion during the status conference to extend jurisdictional discovery is GRANTED.  Jurisdictional discovery shall be completed by Thursday, December 31, 2015.  The parties shall file a joint status report suggesting future proceedings by no later than Thursday, January 21, 201

 

Why?  Anybody's guess.  Perhaps they want to accumulate more information to make the case stronger.  Perhaps the government wants more time to negotiate a settlement and in exchange for giving them more time the Plaintiffs asked that they are allowed to dig deeper to further strengthen their case.  Just a thought.

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because this case is in the jurisdictional discovery phase, the court finds that it ispremature to grant at this juncture plaintiffs’ various motions to remove the “protected information” designation from certain deposition transcripts and documents produced during jurisdictional discovery.Consequently,the court DENIES as premature

 

Further, she did not say it was denied for any legal reason.  Wouldn't she outright deny the motion if it were based on some legal reason?  I think it speaks volumes that she simply delayed her decision claiming it was premature at this point in discovery.  How weird would it be if in the future Sweeney said "motion DENIED due to it being an unlawful request by NYT" (or something along those liens) after today saying it's simply premature?  Merkhet/others, am I wrong in this line of thinking?

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It's a setback because the pressure is off for a few more months. Earlier is better.

 

Would it be better to give Obama a few more months to do the right thing (release), or would it bet better to have documents released to the public today (taking away any incentive to release/settle) and have it be entirely in the hands of the courts?  I'm not sure of the answer to that.

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It's a setback because the pressure is off for a few more months. Earlier is better.

 

 

Fairholme's the ones that wanted the extension.

 

I know that. I just can't figure out why.

 

And Luke, you can't assume that on the motions to unseal. If it's premature, she doesn't even have to consider the legal arguments, so it wouldn't be incongruous to say later that the legal reasoning doesn't fly. Even if I think that's unlikely.

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