Discovery evidence is crystal clear. Evidence will show Paulson, Bernanke, Lockhart, Ugoletti and many others “conspired” to takeover and use the GSEs to “Bailout” the TBTF banks while publicly stating that the GSEs needed a bailout and also declared they need to be winded down to avoid future crisis. Why hide the truth under “Protected Information” Designation?
To this day, the government is still trying to hide the real facts and purpose under “Protected Information” and/or “Privilege”. Of course, there are many politicians and government officials still claiming GSEs placed taxpayers at financial risk and have not paid down their debt. There are more fallacies than truth.
Here’s the truth, the GSEs are placing taxpayers at risk because Treasury is expropriating the GSEs’ assets, capital and net profits through the PSPA and net worth sweep amendment. The amount of money expropriated is significantly much higher than the money borrowed. Treasury has set a financial time bomb that is slowly destroying both GSEs value. Read the facts, the original PSPA placed both GSEs in huge financial risk by requiring them to wind down their profitable investment portfolios by 2018 causing them to be unsound and unsafe while distributing their assets and net profits to Treasury.
It’s time to let the mask magician expose this Vegas type of illusion. First, I have to hand it to Paulson and crew. It was one of if not the best financial illusion I have ever seen in my life time. I believe illusion did save the U.S. economy but at the huge and clearly unfair cost to all GSEs shareholders. If anything, GSEs shareholders should be rewarded for helping the government save the U.S. Economy at a time of crisis. Neither GSEs needed a bailout or huge amount of funds.
The truth is, GSEs were financially stable in comparison to others institutions with a huge and stable financial network infrastructure which can manage and transfer billions of dollars through their established mortgage securitization system, pipeline and other key conduits to provide market liquidity.
Remember, as folks focused on government’s statement like “GSEs placing taxpayers at financial risk and/or GSEs bailout”, Paulson and crew started using AIG and GSEs as the “Conduit Entities” to funnel and transfer billions of dollars to bailout many large financial institutions including Goldman and BoA (Countrywide & Merrill).
See below links. You’ll get the picture.
A U.S. judge on Friday ordered Nomura Holdings Inc and Royal Bank of Scotland Group Plc to pay a collective $806 million for making false statements in selling mortgage-backed securities to Fannie Mae and Freddie Mac.
To this day, we still have U.S. Representatives and Senators who believe that GSEs placed taxpayers at risk. The fact is that the Treasury placed taxpayers at risk with the creation of the PSPA and the third amendment. The PSPA forces the GSEs to wind down their investment portfolio and the 3rd Amendment allows Treasury to take all of the net profits while preventing the GSEs to preserve and conserve capital. Also, GSEs have paid back Treasury with interest and principal plus significantly more which continues today.
If these Representatives and Senators believe GSEs place taxpayers at risk, they should be first to ask to remove the “Protected Information” Designation from materials produced during discovery to get to the truth.
Hide the facts while stealing the money:
Today, we wait for Judge Sweeney’s ruling to remove the “Protected Information” Designation and pending motion to stay briefing on Government’s supplemental motion to dismiss.