Edited 8/14/14 12:34 AM and 1:24 AM
In a massive new development in the Fairholme lawsuit today Judge Sweeney wants any direct orders from the White house or the Treasury department regarding the third amendment sweep (Soviet style profit grab) to go directly to Fairholme’s attorney’s. She wants this done regardless of what her protective order states. Why this sudden shift? It’s obvious that Judge Sweeney has lost all trust in the government attorney’s to follow the rule of law. If even one such document surfaces that will spell the end of the third amendment sweep. It will prove what I have been saying all along that the government made a deal with the government to sweep all of Fannie and Freddies profits to the government. The government claims that the FHFA acted independently when they agreed to the sweep. This has to one of the most-outrageous lies that the government has made. It’s great to see that Judge Sweeney has now clearly seen right through the governments river of lies.
Remember the secret treasury memo from 2010 in which the Treasury department made it clear to the FHFA that the administration does not want private shareholders to reap any future gains from Fannie or Freddie. There is no doubt in my mind that the very orders Judge Sweeney wants to be sent directly to Fairholme’s attorneys do exist.
This explains why we have seen such an escalation in the lies and deception the last few days by those who would love to see our demise. One of our readers RSALAZAR provided an article from Bloomberg going back to 8/17/12 the day the third amendment sweep was enacted. In the article Peter Wallison, co-director of the American Enterprise Institute’s program on financial policy and a frequent critic of the GSEs said “the new arrangement will help ensure the companies eventually are wound down.
The most significant issue here is whether Fannie and Freddie will come back to life because their profits will enable them to re-capitalize themselves and then it will look as though it is feasible for them to return as private companies backed by the government,” Wallison said in a telephone interview. “What the Treasury Department seems to be doing here, and I think it’s a really good idea, is to deprive them of all their capital so that doesn’t happen.”
Peter Wallison hit the nail on the head the day the sweep went into effect. Thank you Peter, I know you like many others hate Fannie and Freddie but your words on 8/17/12 just may play a role in keeping them alive.
I will be posting tomorrow on the Cramer tweets. I think he unwittingly showed Jack lew’s hand. I want to thank Mark for attending today and getting us this critical information.
Keep the Faith!