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Gretchen Morgenson’s latest article in the New York Times (5/20/2016)

How Freddie and Fannie Are Held Captive

The latest unsealed documents provide more evidence of their hidden plans. It is very explosive and telling in comparison to the Appeals Court final argument from the Government.  It’s crystal clear of what did they knew. It is all spelled out in the latest unsealed email.  It is a must read and make your own judgement.   The latest unsealed docs

Based on Judge Ginsburg comments during the Appeals Court Oral Argument, I suspect all three Appeals Court Judges might have read the unsealed emails.

[JUDGE GINSBURG: But when the Third Amendment was
announced the Treasury said we’re going to wind this thing
down, we’re going to kill it, we’re going to drive a stake
through its heart, and we’re going to salt the earth so it
can never grow back] Recording at 2:18:40

Appeals Court Oral Argument Recording

Appeals Court Oral Argument Transcript

Bruce Berkowitz – De-Designation of Additional GSE Documents

Somewhat related in terms of DOJ deceptive is everywhere.

Judge orders ethics classes for ‘deceptive’ DOJ attorneys.

Investor Unite established a new website:

Fannie & Freddie Secrets

Jim Parrott to Alex J Pollock; Peter J. Wallison; Edward Pinto; and Timothy Bowler email subject PSPA

“Feel like fellow travelers at this point so I owe it to you.”

Fellow Traveler definition 

Investors Unite to Hold Briefing on New Paper by UVA Professor on Misuse of Executive Privilege in Fannie, Freddie Case

Teleconference Audio with Saikrishna Prakash (5/16/2016)

Seizure of Private Property Behind a veil of Secrecy

As Always, excellent discussion at Howard on Mortgage Finance

For Daily GSE News, Resources, and Other Information, visit GSE Links

Couldn’t help but repost this from the comment section:

From Corner of Berkshire & Fairfax Message Board

Steve_Berk wrote:

Are you guys reading the docs? I kind of can’t believe what I’m reading. Take a look at the email exchange between Chris Russell and Jim Parrott. Russell works in communications for the White House and Parrott is an economic adviser to Obama.

After the NWS, Parrott sends Russell (p23 of the pdf) a statement from a Congressman who says that the NWS is an example of the Obama administration kicking the can down the road and that the reduction of the dividend means that taxpayers will be on the hook for the foreseeable future.

P says to R, “this caught me by surprise. we’re not reducing their dividend but including in it every dime these guys make going forward and ensuring that they can’t recapitalize.” WHAT?!!! That ain’t preserve and conserve much less bringing the GSE to a sound and solvent state. So to me that means that the FHFA and the Treasury HAVE to win the argument that the statue allows the conservator to act as a receiver. I previously thought that they could prove that their actions achieved some kind of middle ground–like pressing pause and conserving in a different way. But you can’t ignore this exchange.

But wait, there’s more…. R says to P “It MIGHT be net positive WHEN they r turning a profit. But based on the discussions I had this morning with other experts in the field, the consensus is that this essentially removes any pressure points to do something eventually with them and puts it well after 16. As u well know, politicians sometimes don’t act unless they are forced to.”

In a later email R says to P, “Preference is not to have two defacto public utilities with a $274 bill capital cushion. Where is the impetus now to deal with the issue? The dividends were initially set like that for a reason. In regards to them keeping additional profits, in my mind that is only an accounting issue, gov recoups now (per new method) or later when we liquidate them and then realize those gains for the taxpayer.’

OK, so obviously the purpose of the NWS is to set up the liquidation of the GSE’s–they distinctly recognize the possibility that they will turn a profit, but the overall purpose is to wind down, so they can either take the money now and realize $ for taxpayers or liquidate later and realize gains for taxpayer. This sounds completely and utterly contrary to the whole death spiral explanation. I wonder if they can try to submit supplemental briefing in Perry in light of these documents. In any case, surely the judges in Perry are taking a close look here.

It’s been about a year and the truth is finally coming out:

Redacted Version Motion to Compel (December 7, 2016)

Wake up people! Get the truth out! GSEs need their Independence’s Day. (July 6, 2015)

Independence Day is near. It’s time for a full Media Blitz to expose the Truth. (July 1, 2015)

The Prediction: the Motion to Dismiss, DENIED (May 8, 2015)

Treasury and FHFA Conspired and Crafted the 2012 Amendment to Help Expedite the Wind Down. (April 9, 2015)

4617(a)(7) Agency not subject to any other Federal agency
When acting as conservator or receiver, the Agency shall not be subject to the direction or supervision of any other agency of the United States or any State in the exercise of the rights, powers, and privileges of the Agency.
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