Thursday, February 27, 2014

Fannie Mae, Freddie Mac: Fairholme Victory Vs Treasury

Fannie Mae, Freddie Mac: Fairholme Victory Vs Treasury



Discovery will attempt to find:
1. will enable plaintiffs to confirm that such evidence exists with regard to profitability and additionally answer the question as to when, and how, the Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) conservatorship will end
2. The question to be answered is a fact-intense inquiry that will include consideration of whether the FHFA acted at the direct behest of the Treasury. If, as plaintiffs allege, the FHFA was an agent and arm of the Treasury, then this court possesses jurisdiction over plaintiffs’ complaint. The evidence needed by plaintiffs to respond to defendant’s jurisdictional allegations is within the hands of defendant, and otherwise not publicly available.
3. Specifically, plaintiffs have shown that document and deposition discovery will disclose evidence relevant to the disputed factual issues about Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)’s solvency and the reasonableness of expectations about their future profitability, as well as provide answers related to why the government allowed the preexisting capital structure and stockholders to remain in place, and whether this decision was based on the partial expectation that Fannie Mae and Freddie would be profitable again in the future. This evidence is in the possession of defendant only

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