One of the biggest insights we have gained in this motion for the protective order is a glimpse into what exactly Fairholme has requested in discovery. Fairholme has continued to conduct themselves masterfully, the documents they seek essentially has the government in check and we may soon see a checkmate. The government knows this and at last they are taking this seriously. That is a great sign, until now they have basically brushed us aside with their insolence and arrogance.They are visibly terrified at this point. It is important to remember that the discovery that Judge Sweeney granted is to do with the governments motion to dismiss. Judge Sweeney allowed discovery so Fairholme could defend against the reasons the Government cites as its reasons for the motion to dismiss.I suggest that you reread Judge Sweeneys order for discovery (Feb. 26) to get the proper context. The government spent the last several months making a mockery of the US judicial system with their insolence and arrogance. Their main defense has been we are the government, we can do whatever we want. It seems that Judge Sweeney has finally got their attention. She has made it clear that we will have our day in court, and they will comply with her orders.
I have many thoughts on what I have read but first and foremost I must remind the government that if they had not chosen to commit securities fraud they would not have to produce anything at all. They have entrapped themselves in their own web of lies and now are begging the Judge to wave a wand and magically release them. I can not wait to see Fairholmes response to their many pathetic arguments. Again and again they grossly contradict themselves. One of the most alarming arguments is that somehow by producing factual documents investors may be spooked into not buying Fannis and Freddies bonds. Think about this for a moment, imagine if the CEO of Bank of America or any big financial institution was caught saying something like this? Basically, they are admitting that they have withheld information and have been misleading investors into buying their bonds? I have honestly to wonder if mel Watt is trying to sabotage the governments case completely, his arguments are that bizarre.
The government argues that to reveal what is being requested would make it hard to retain employees at Fannie and Freddie. Do they think all the bashing and wind down talk has been an employee morale builder? Representatives from all areas of government have had no problem discussing the very issues they now seek to repress in the most negative of contexts to bash us and attempt to destroy the value of both Fannie and Freddie, to further their own self-serving theft of all of our profits. Now that Fairholme is requesting all aspects of their date somehow it would cripple the entire US economy. I highly doubt these delusional/fantastical claims will sway Judge Sweeney to go along with their desire to bury the evidence.
I am prepared to post a summary of the governments own words in regards to the conservatorship in relation to this lawsuit, but I will withhold that for a few days as not to distract from this current development. I have been asked to choose our words carefully as some of our commentaries appears to have been used by the government in their own strategies. I could not help but notice their use of the “chilling” adjective 7 times in their motion. You will remember I said in a recent post–One person who has vast historical experience on these issues, when reviewing the third amendment sweep said,” I find this absolutely chilling, orders such as this were commonplace in the former Soviet Union” I knew that would get their attention, but to copy us seven times? I am less than flattered. I remind the government the definition of chilling–adjective \ˈchi-liŋ\
: very disturbing or frightening. It is chilling that they would even have attempted such a brazen scheme nevermind the lengths they are going to cover it up. Fear not, the truth will be victorious and always, Keep the faith!