Thursday, May 28, 2015

Why not sue the FHFA for not following HERA?

Why not sue the FHFA for not following HERA?
Same with Treasury? Forget suing for fannie as a shareholder, as FHFA has standing that it stands in place of shareholders.
Work around this by suing FHFA and treasury for not following the law.
It is obvious this is the case, they are breaking the law as written in HERA.
Hell this is the United States for crying out loud.
FHFA could not give the same bs of no standing since we are shareholders.
Not true in this type of suit. Follow the law!
Citizen suit
From Wikipedia, the free encyclopedia
In the United States, a citizen suit is a lawsuit by a private citizen to enforce a statute.[1] Citizen suits are particularly common in the field of environmental law.[2]
Citizen suits come in three forms. First, a private citizen can bring a lawsuit against a citizen, corporation, or government body for engaging in conduct prohibited by the statute. For example, a citizen can sue a corporation under the Clean Water Act (CWA) for illegally polluting a waterway. Second, a private citizen can bring a lawsuit against a government body for failing to perform a non-discretionary duty. For example, a private citizen could sue the Environmental Protection Agency for failing to promulgate regulations that the CWA required it to promulgate. In a third, less common form, citizens may sue for an injunction to abate a potential imminent and substantial endangerment involving generation, disposal or handling of waste, regardless of whether or not the defendant’s conduct violates a statutory prohibition. This third type of citizen suit is analogous to the common law tort of public nuisance.[3] In general, the law entitles plaintiffs who bring successful citizen suits to recover reasonable attorney fees and other litigation costs.[4]
In 1970, when amending the Clean Air Act, the United States Congress was inspired by similar legislation in the civil rights arena[5] to begin including specific provisions for citizens to bring suit against violators or government agencies to enforce environmental laws. Today, most anti-pollution laws have provisions for citizen suits and they have become a major means of ensuring compliance with environmental laws. Public-interest environmental legal service organizations, such as Earthjustice and the Tulane Environmental Law Clinic, often prosecute citizen suits.[6] Some non-environmental statutes, such as the Americans with Disabilities Act and the Fair Housing Amendments Act, also contain citizen suit provisions, but the majority of regulatory statutes do not.
Citizens may only bring citizen suits in federal court if they have “standing to sue”. To establish standing, the courts have required proof of three elements. First, the plaintiff must have suffered an “injury in fact”—an invasion of a legally protected interest which is (a) concrete and particularized and (b) “actual or imminent, not ‘conjectural’ or ‘hypothetical’”. Second, there must be a causal connection between the injury and the conduct complained of—the injury has to be “fairly … trace[able] to the challenged action of the defendant, and not … th[e] result [of] the independent action of some third party not before the court.” Third, it must be “likely”, as opposed to merely “speculative”, that the injury will be “redressed by a favorable decision.”[7]

THOMAS SAXTON, IDA SAXTON,BRADLEY PAYNTER,Plaintiffs,vs.THE FEDERAL HOUSING FINANCEAGENCY, in its capacity as Conservator of theFederal National Mortgage Association and theFederal Home Loan Mortgage Corporation,MELVIN L. WATT, in his official capacity asDirector of the Federal Housing FinanceAgency, and THE DEPARTMENT OF THETREASURY,Defendants.No. 1:15-cv-00047
Thomas Saxton, Ida Saxton, and Bradley Paynter, by and through their undersignedcounsel, hereby allege as follows

46138. Implicit in every contract is a covenant of good faith and fair dealing. The impliedcovenant requires a party in a contractual relationship to refrain from arbitrary or unreasonableconduct which has the effect of preventing the other party to the contract from receiving thefruits of the bargain.139. Holders of the Companies’ preferred and common stock have certain contractualrights. Preferred stockholders are entitled to a contractually specified, non-cumulative dividendand to a contractually specified liquidation preference. The dividend and liquidation rights of private preferred shareholder are prior to those of common shareholders. The Companies maynot pay dividends or make distributions on account of its common stock in any quarter wheredividends on preferred stock is not paid in full. Common shareholders are entitled to be paiddividends in parity with other common shareholders, and upon liquidation they are entitled to ashare of the residual economic value of the firm after payment of debtholders and equity holderssenior in priority to common stock.140. FHFA’s agreement to the Net Worth Sweep has arbitrarily and unreasonablyprevented Plaintiffs and other private shareholders from receiving any of the fruits of theirinvestment. Again, the Net Worth Sweep replaced the 10% dividend on Treasury’s GovernmentStock with a perpetual requirement that the Companies pay their entire net worth to Treasury.The Net Worth Sweep thus strips the Companies of their ability to generate and retain funds todistribute as dividends to Plaintiffs and other holders of preferred and common stock.141. The Net Worth Sweep also (a) subverts the priority rights of preferredshareholders by effectively transforming Treasury’s Government Stock into common stock andrequiring the Companies to pay dividends on that common stock without first paying dividends
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47on preferred stock, and (b) effectively replaces the Companies existing common stock withTreasury’s Government Stock.142. By essentially expropriating the entirety of the Companies’ net worth for thegovernment, the Net Worth Sweep also nullified entirely the contractual right of Plaintiffs andother holders of common and preferred stock to receive a payment upon the dissolution,liquidation, or winding up of Fannie and Freddie.143. No provision of Plaintiffs’ contracts with Fannie and Freddie reserves to theCompanies any right to
 nullify entirely
 the Companies’ contractual obligations toPlaintiffs and other private shareholders by granting rights to another class of the Companies’stock.144. In sum, the Net Worth Sweep repudiates and nullifies entirely the scope, purpose,and terms of the contracts governing the relationships between Fannie and Freddie and theirpreferred and common shareholders.145. FHFA has therefore both exceeded its statutory authority under HERA andbreached the implied covenant of good faith and fair dealing.
146. WHEREFORE, Plaintiffs pray for an order and judgment:a. Declaring that the Net Worth Sweep, and its adoption, are not inaccordance with and violate HERA within the meaning of 5 U.S.C. § 706(2)(C), and thatTreasury acted arbitrarily and capriciously within the meaning of 5 U.S.C. § 706(2)(A)by executing the Net Worth Sweep;b. Vacating and setting aside the Net Worth Sweep, including its provisionsweeping all of the Companies’ net worth to Treasury every quarter;
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48c. Enjoining Treasury and its officers, employees, and agents to return toFHFA as conservator of Fannie and Freddie all dividend payments made pursuant to theNet Worth Sweep or, alternatively, recharacterizing a portion of such payments as a paydown of the liquidation preference and a corresponding partial redemption of Treasury’sGovernment Stock rather than mere dividends;d. Enjoining FHFA and its officers, employees, and agents fromimplementing, applying, or taking any action whatsoever pursuant to the Net WorthSweep;e. Enjoining Treasury and its officers, employees, and agents fromimplementing, applying, or taking any action whatsoever pursuant to the Net WorthSweep;f. Enjoining FHFA and its officers, employees, and agents from acting at theinstruction of Treasury or any other agency of the government and from re-interpretingthe duties of FHFA as conservator under HERA;g. Awarding Plaintiffs damages resulting from FHFA’s breach of contractand breach of the implied covenant of good faith and fair dealing, including withoutlimitation contractually-due dividends on the preferred and common stock for eachquarter when a dividend based on the net worth of the Companies was paid to Treasury;h. Awarding Plaintiffs their reasonable costs, including attorneys’ fees,incurred in bringing this action; andi. Granting such other and further relief as this Court deems just and proper

Wednesday, May 27, 2015

“The Treasury Department believed in saving those at the top, and didn’t worry much about the rest of America,”

The newyorker has the goods.
Warren told me, “We were there to do oversight, and it made no difference to me whether there was a Democrat or a Republican in the White House. Our only consideration should be the American people, not whose feelings in government might get hurt or whose political careers might be advanced.” Warren said her work on the panel studying Treasury’s practices taught her that Obama’s economic advisers were even more beholden to the banks than she had understood. “The Treasury Department believed in saving those at the top, and didn’t worry much about the rest of America,” she said.
Warren was well known in liberal policy circles, but Geithner had never heard of her until she became his overseer and summoned him to testify. He felt that she was much better at complaining about what she was against than at articulating what she was for. In his recent memoir, “Stress Test,” Geithner calls Warren “one of our most ardent and eloquent liberal critics” but chastises her for not offering him more specific policy suggestions during the financial crisis.
Warren quickly realized that, although she could hold hearings and write reports, her panel had no more authority than her old blue-ribbon bankruptcy commission. Those writing the new rules for financial regulation had the real power. Warren thought she had a chance to get a Consumer Financial Protection Bureau into the emerging law, so she stopped excoriating Geithner, and met with Fine, the bank lobbyist. She knew that public opposition to the protection bureau on his part could kill it.

The FHFA OIG, press releases

The FHFA OIG is established by law to provide independent and objective reporting to the FHFA Director, Congress, and the American people through its audit and investigative activities.

FHFA OIG’s mission is to promote the economy, efficiency, and effectiveness of FHFA’s programs; to prevent and detect fraud, waste, and abuse in FHFA’s programs; and to seek sanctions and prosecutions against those who are responsible for such fraud, waste, and abuse.
LIST OF GUILTY? List goes on and on!! Still growing!!
Not one Fannie Mae or Freddie Mac in the bunch!


Press Release: Edward Dacy Found Guilty - 04/01/2015
Press Release: Sentencing of Edgar Tibakweitira - 03/31/2015
Press Release: Indictment of Joseph Pasquale - 03/27/2015
Press Release: Sentencing of Anthony Minor - 03/18/2015
Press Release: Sentencing of Agustin Simon - 03/02/2015
Press Release: Sentencing of Asm Afsary - 02/26/2015
Press Release: Plea of Enrique Hernandez - 02/24/2015
Press Release: Indictment of Alberic Agodio - 02/20/2015
Press Release: Conviction of Carmen Johnson - 02/20/2015
Press Release: Sentencing of Michael Wallis - 02/19/2015
Press Release: Sentencing of Ronald Hutchison, Jr. - 02/09/2015
Press Release: Sentencing of Grant McCollough and Marisa McCollough - 02/09/2015
Press Release: Plea of Joseph Brogan - 01/30/2015
Press Release: Plea of Jose Antonio Caballero - 01/28/2015
Press Release: Sentencing of Annika Boas - 01/07/2015

Press Relese: Plea of Rashmi Airan-Pace - 12/17/2014
Press Release: Sentencing of Andrew Constantinou - 12/16/2014
Press Release: Sentencing of Abdallah Suleiman Kitwara - 12/02/2014
Press Release: Conviction of Stavroula Mendez, Lazaro Mendez, and Marie Mendez - 11/21/2014
Press Release: Laura Wertheimer sworn in as Inspector General of FHFA - 10/28/2014

Press Release: Indictment of Guillermo Rincon and Enrique Hernandez - 10/17/2014
Press Release: Conviction of Annika Boas - 09/23/2014
Press Release: Indictment of Fred Davis Clark, Jr., and Cristal R. Clark - 09/16/2014
Press Release: Conviction of Anthony Minor - 09/11/2014
Press Release: Bank of America to Pay $16.65 Billion in Historic Settlement for Financial Fraud - 08/21/2014
Press Release: Sentencing of Soo Kyung Hong (aka Maria Hong) - 08/21/2014
Press Release: Plea of Brandon Bolger - 08/20/2014
Press Release: Sentencing of Daniela Spiridon - 08/19/2014
Press Release: Plea of Luis Michael Mendez and Wilkie Perez - 08/15/2014
Press Release: Plea of Mohammad Fouzi Haffar - 08/08/2014
Press Release: Over $1 Billion in Penalties Imposed on Bank of America, Countrywide, and Rebecca Mairone for Engaging in Mortgage Fraud - 07/30/2014
Press Release: Indictment of Edward Dacy and A. Conrad Austin - 07/22/2014
Press Release: $7 Billion Global Settlement wtih Citigroup - 07/14/2014
Press Release: Plea of Sathish Kumar Chandhun Rajendran - 07/11/2014
Press Release: $320 Million Agreement with SunTrust Bank - 07/03/2014
Press Release: Indictment of Alex Barrett, Barthelemy Adjavehoude, Michelle Baker, James Bayfield, Samuel Terrell Bell, and Dirk Hall - 06/25/2014
Press Release: Sentencing of Donna Cobb - 05/29/2014
Press Release: Indictment of Warren Barr III, Robert Lattas, Jeffrey Budzik, Asif Aslam, Leonardo Sanders, and James Carroll - 05/19/2014
Press Release: Plea of Leidy Masvidal, Alfredo Chacon, Francisco Martos, Dorian Magarino, Tania Masvidal, and Douglas Ponce - 05/15/2014
Press Release: Plea of Laura Ortuondo - 05/01/2014


Press Release: Conviction of Andrew Constantinou and Jacques Kelly - 04/21/2014
Press Release: Indictment of Bijan Madjlessi, David Lonich, Sean Cutting, and Brian Melland - 04/10/2014
Press Release: Indictment of Luis Mendez, Stavroula Mendez, Luis Michael Mendez, Lazaro Mendez, Marie Mendez, Wilkie Perez, and Enrique Angulo - 03/31/2014
Press Release: Indictment of Robert Poynter - 03/21/2014
Press Release: Plea of Lacie Devine - 02/26/2014
Press Release: Plea of Mokorya Wambura - 02/12/2014
Press Release: Charges Brought Against Anthony Minor, Tilisha Morrison, Katrina Thomas, Kario Butler, Karen Mendoza, Cyrus Pritchett, and Jamilah Karriem - 02/07/2014
Press Release: Sentencing of Michael Burnham - 02/06/2014
Press Release: Sentencing of James Lankford - 01/27/2014
Press Release: Indictment of Minerva Sanchez - 01/23/2014
Press Release: Conviction of Alfonso Carillo - 01/16/2014
Press Release: Sentencing of Teresa Rose - 01/03/2014

Press Release: Plea of Michael Wallis - 12/23/2013
Press Release: Sentencing of Steven Pelz - 12/16/2013
Press Release: $13 Billion Global Settlement with JPMorgan - 11/19/2013
Press Release: Indictment of Wendy Thomas, Cristina Nicole Smith, Kurt Smith, Sheila Gaston, Sheila Giberti, Duane Thomas, Christopher Consol, Janice Gardner, and Joseph Slowey - 11/18/2013
Press Release: Plea of James Lankford - 10/21/2013
Press Release: Sentencing of Patrick Mansell - 10/17/2013
Press Release: Sentencing of Quelyory Rigal - 10/17/2013
Press Release: Charges Brought Against Karl Robinson, Michael Bachmeier, Thomas Powell, Yamen Elasadi, and Jahi Kokayi - 10/01/2013

Press Release: Sentencing of Mary Armstrong and William Fountain - 09/30/2013
Press Release: Plea of Daniela Spiridon - 09/26/2013
Press Release: Sentencing of Kwame Nkrumah and Charmaine Davis - 09/13/2013
Press Release: Sentencing of Larry Bradshaw - 09/12/2013
Press Release: Plea of Christopher Ginyard, Henry Pearson, Jr., Janice Young, and Henry Pearson, Sr. - 09/03/2013
Press Release: Sentencing of Joel Tillett - 08/14/2013
Press Release: Indictment of Donald Totten - 08/08/2013
Press Release: Plea of Patrick Mansell - 08/06/2013
Press Release: Sentencing of Jay Dunlap - 07/31/2013
Press Release: Arrest of Donald Totten - 07/25/2013
Press Release: Plea of Tammy Roaderick - 07/19/2013
Press Release: Charges Brought Against Patrick Mansell - 07/11/2013
Press Release: Plea of Jewel Hinkles - 07/08/2013
Press Release: Sentencing of Scott Powers and David McMaster - 06/28/2013
Press Release: Plea of Jesse Wheeler and Brent Medearis - 06/24/2013
Press Release: Indictment of Lacie Devine - 06/14/2013
Press Release: Plea of Charmaine Davis - 06/14/2013
Press Release: Indictment of Edgar Tibakweitira, Gaudious Tibakweitira, Flavia Makundi, Carmen Johnson, Mokorya Wambura, Cane Mwihava, and Annika Boas - 06/13/2013
Press Release: Charges Brought Against Cynthia Hosbrook and Robert Hosbrook - 06/12/2013
Press Release: Indictment of Steven Bartlett, Robert Lattas, Nicholas Burge and Anthony Campanale - 06/04/2013

Press Release: Plea of Kwame Nkrumah - 05/14/2013
Press Release: Indictment of Manjur Alam, Janice Young, Bruce Dykes, Christopher Ginyard, Henry Pearson Sr., Henry Pearson Jr., and Steven Pelz - 05/02/2013
Press Release: Indictment of Joel Tillett, Jason Boggs, Claribel Gonzalez, Florentina Peralta, Ghovanna Gonzalez, and Angela Diaz - 05/01/2013
Press Release: Sentencing of Mitchell Cohen - 04/26/2013
Press Release: Conviction of Quelyory A. Rigal - 04/25/2013
Press Release: Sentencing of David Christian - 04/19/2013
Press Release: Indictments and arrest of Lawrence Day, Donna Cobb, Bryan Scott, Michael Edwards, Scott Sherman, and Donald Mattox - 04/17/2013
Press Release: Sentencing of Jerrick Hawkins - 04/04/2013
Press Release: Sentencing of Kenneth Koehler - 04/03/2013
Press Release: Indictment of Armando Granillo - 03/26/2013
Press Release: Indictment of Daniela Spiridon - 03/22/2013
Press Release: Indictment of Larry Bradshaw - 03/14/2013
Press Release: Sentencing of Brandon Young - 03/08/2013
Press Release: Sentencing of Dean Counce - 02/20/2013
Press Release: Indictment of Andrew Constantinou, Genevieve Salvatore, and Lawrence Dressler - 02/15/2013
Press Release: Charges Brought Against Jose Salguero, Paul Chemidlin, Delio Coutinho, Joseph DiValli, Christopher Ju, Carmine Fusco, Jose Martins, Yazmin Soto and Kenneth Sweetman - 01/24/2013
Press Release: Indictment of Joshua S. Goldberg - 01/22/2013
Press Release: Sentencing of Harriet Taylor - 01/17/2013
Press Release: Charges Brought Against Samer Salami - 01/16/2013
Press Release: Sentencing of Dennis Edwards - 01/15/2013

Press Release: Sentencing of Dennis Edwards - 01/15/2013
Press Release: Arrests of Aref Abaji, Aliso Viejo, Maher Obagi, Jacqueline Burchell, Mohamed Salah, and Mohamed El Tahir - 01/10/2013
Press Release: Plea of Jerrick Hawkins - 01/09/2013
Press Release: Sentencing of Juan Carlos Sanchez - 01/04/2013

Press Release: Plea of Lauretta Horton and David Kaufman - 11/30/2012
A.G. Schneiderman Sues Credit Suisse - 11/20/2012
Press Release: Indictment of Jerrick Hawkins - 11/16/2012
Press Release: Sentencing of Bradford Rieger - 11/16/2012
Press Release: Plea of Larry Reisman - 11/08/2012
Press Release: Sentencing of Raymond Morris - 11/05/2012
Manhattan U.S. Attorney Sues Bank of America - 10/24/2012
Press Release: Plea of Juan Carlos Sanchez - 10/18/2012
Financial Fraud Enforcement Task Force Reveal Results of Distressed Homeowner Initiative - 10/09/2012
A.G. Schneiderman Sues J.P. Morgan - 10/02/2012
Press Release: Plea of Kenneth Koehler - 09/14/2012
Press Release: Indictment of 11 individuals linked to 21st Century Real Estate Investment Corp. - 09/12/2012
Press Release: Plea of Harriet M. Taylor - 09/12/2012
Press Release: Indictment of Mitchell Cohen and Erin Davis - 07/17/2012
Press Release: Plea of Bradford Rieger - 07/12/2012
Press Release: Arrest of Mary Armstrong - 07/12/2012

Press Release: Plea of Jeffrey Weisman - 07/11/2012
Press Release: Plea of David Christian - 06/29/2012
Press Release: Sentencing of Delton de Armas - 06/15/2012
Press Release: Indictment of Abacus Federal Savings Bank and 11 Employees - 05/31/2012
Press Release: Indictment of Juan Carlos Sanchez, Quelyory Rigal, Sandra Campo, Osbelia Lazardi, Dayanara Montero, Celeste Mota, and David Arboleda - 05/31/2012
Press Release: Plea of Catherine Kissick - 03/02/2012

Press Release: Arrest of Marshall E. Home - 07/01/2011
Press Release: Sentencing of Lee Farkas - 06/30/2011
Press Release: Sentencing of Paul Allen and Sean Ragland - 06/21/2011
Press Release: Sentencing of Catherine Kissick and Teresa Kelly - 06/17/2011
Press Release: Sentencing of Desiree Brown and Raymond Bowman - 06/10/2011
Press Release: Conviction of Lee Bentley Farkas - 04/19/2011
Press Release: Plea of Paul Allen - 04/01/2011
Press Release: Plea of Sean Ragland - 03/31/2011
Press Release: Plea of Teresa Kelly - 03/16/2011
Press Release: Plea of Raymond Bowman - 03/14/2011
Plea of Desiree Brown - 02/24/2011