The news reported by Reuters concerning Fannie Maes settlement with past shareholders has little to no bearing on our current post conservatorship lawsuits. This was brought by past shareholders of Fannie Mae who felt Fannie “defrauded shareholders and inflated its stock by issuing false and misleading statements about its internal controls, capitalization, accounting, and exposure to subprime and low-documentation “Alt-A” mortgages”. As far as the merits of this case I would need to study the filings to make an intelligent analysis.I think it was a good strategic decision to get this behind us now rather than have this news break when the inevitable battle erupts concerning Fannie and Freddies release. That would have given our opposition ammunition to support their outrageous Fannie, and Freddie destroyed the world claims. Essentially the way things stand right now 170 million that would have gone to the treasury in a sweep will go to past shareholders to settle this claim
This settlement provides us with an opportunity to share a very important point. I would caution that we are careful not to follow our oppositions lead. Just because they have tried to drown us in a river of lies we should hold fast to the truth. To try and claim Fannie and Freddie made no mistakes leading into the crisis is no different than them claiming they were the roots of all evil. The truth has been one of the most powerful tools in this battle. This is the reason so many people have grown to rely on us, including some very influential people in DC.We need to continue to present the truth regardless of how it reflects on our position.
In other news, I want to point out an article by Dan Freed at the Street. He has obviously keyed in on our discussions of the coup. Note the conversation he had with Corinne Russell. I am going to taper my analysis of this a bit again. The last thing we want to do is blow this by revealing too much too fast. I also want to thank everyone for refraining from publicly debating the complicated nature of the warrants. This really is unproductive at this point.There is a time and place for everything and I trust that our readers still can read between the lines as well. Keep the Faith!