The Senior agreement and Third Sweep
It should be noted the Senior agreement along with the Third sweep were NOT signed by the board of fannie, but by the FHFA and the treasury.
Now if the sweep is Found to be at the Direction of treasury and not the FHFA what about the Senior Preferred agreement? It would stand to reason that they will be brought into the same answer as the Third will bring. The senior agreement was the give away of the warrants to the treasury. If the treasury was directing the show, making a contract with itself, the warrants will be GONE along with the entire agreement.
The court will turn the whole thing on its ear once discovery comes out and the warrants will be useless.
Another thing is the action of congress and HERA and the treasury made life hard for fannie in the months ahead of takeover. They made the market question the companies, The companies did not need to have a positive stock value of more that .01 to be solvent? To be solvent the companies had to pay its bills, not have a high stock price. The govt used the falling stock price as a reason for takeover. Paulson told the hedge funds to short the stocks of fannie.
As soon as the govt took over in the last month of the 3rd quarter of 2008, they had 30 days to prove the insolvency of fannie, and they did by writing off 50 billion in fake losses in the 3rd quarter of 2008. How do we know this was a fake 50 billion loss? Simple the 60 billion paid in 2013 from DTA in the 1st quarter. The Dta was a reversal of the write down of the 3rd quarter of 2008 and most of the 4th quarter. Fannie was not insolvent and did not lose 70 plus billion in the first 2 quarters of conservatoreship. The narrative that the Govt writes has been so pushed down everyone’s throat that they are making people believe the LIE. That initial 70 billion that was mostly fake to begin with then started the cycle of paying 10% dividend on money they did not need and this grew the Senior stock to over 100 billion.
MOSTLY BASED ON LIES AND FRAUD. I wish I could write this better but the lie is easier to tell than the truth and the govt wants everyone to believe the lie!!
- PVCT shareholder blog
- GILD shareholders blog
- FANNIE FREDDIE GOOGLE GROUP
- Bill Maloni GSE
- FNMA - YAHOO message board
- FNMA Real Time QUOTE
- $60 per share, target
- Throwing out the case: Perry Injunction
- Why the FHFA took over Fannie and Freddie and AIG
- homesteading off grid planning
- Save on Your Electric Bill