“Hold no merit,” “contrary to law.” Once again Judge Sweeney reminds the government attorneys that the rule of law still is alive in the USA contrary to what they may believe. I think its pretty obvious that there have been numerous discussions between the FHFA, Treasury department and the administration about the potential for reforming and releasing Fannie and Freddie. More will be revealed. Part of me was hoping that this order would not be made public till after midnight so I could post it on 7/17. Seriously though its been a long day but I wanted to post a few key passages from today’s order. I think they stand pretty well on their own. Keep the Faith!

“the “FHFA cannot evade judicial review. . . simply by invoking its authority as conservator.” County of Sonoma v. Fed. Hous. Fin. Agency, 710 F.3d 987, 994 (9th Cir. 2013); Leon County v. Fed. Hous. Fin. Agency, 700 F.3d 1273, 1278 (11th Cir. 2012) (“The FHFA cannot evade judicial scrutiny by merely labeling its actions with a conservator stamp.”).”

“there is no request by plaintiffs that would potentially restrain or affect the exercise of powers or functions of the FHFA as conservator. Consequently, blanket assertions concerning the court’s ability to conduct these proceedings, especially as they pertain to a discovery matter related to the question of jurisdiction, hold no merit”.

“Overall, defendant advances general claims concerning the sensitive nature of the documents, and the adverse consequences that would result from divulging them. Without more detail regarding the content of the documents, or the opportunity to review them, the court cannot make a finding that they fall under the privilege. Id. (“[A] blanket approach to asserting the privilege is unacceptable and is itself grounds for denying invocation of the privilege.”) (citation omitted). In essence, defendant asserts that the court should merely take its word that the documents—some of which defendant, itself, has not reviewed—are privileged. This suggestion is contrary to law.”