There is one song that perfectly sums up the recent turn of events and our situation for all involved. Breaking tradition, I am posting it first as it provides a perfect backdrop for this post.

( Start song now)

In what has been a series of rapid new developments we have learned from someone very close to the GSE litigation that A Former Treasury official has gone rogue. They are providing a first-hand account to lawyers investigating the lawless actions of our government. I also want to note that several emails have surfaced in which the “true intent” of the third amendment was candidly discussed by administration officials, some of which could be shared publicly soon. This coupled with the Grassley letters, the impending depositions, the administration seeking ways out and the Hillary factor we have been very busy.

In what historically will be viewed as our “shot heard around the world” in one swift move Senator Grassley and the Republicans instantly transformed the entire dynamics of our cause.If our saga were a movie, we are undoubtedly at the climax.
The decisions both sides make in the near future will have huge consequences both for our cause and their legacies.Senator Grassley’s letters were not a casual inquiry or a simple secrecy concern as some have claimed, Quite simply the Republicans have ended the unholy alliance and have gone for the jugular. The letter’s read as if they are from an innocent bystander who had no authority to intervene and stop the outrageous acts they now question, this is how they were designed. For the purpose they seek to achieve they were brilliantly designed in many ways.

In his letter to Attorney General Holder we find:

“1. Has the President personally invoked executive privilege over documents related to the Fannie Mae, Freddie Mac and Treasury Third Amendment agreement? If so, when? If not, why are DOJ attorneys citing that privilege as a reason to withhold those documents?”

Here they are attempting to directly link President Obama to the attempted cover-up and the scheme in general.

2. Does the Third Amendment cause a breach of any of FHFA’s statutory duties to ensure that each regulated entity operates in a safe and sound manner? Please explain.
This question offers two options, lie or admit that the third amendment breaches statutory duties.Check or checkmate?

3. During the negotiation of the Third Amendment between Treasury and FHFA, did DOJ communicate with any of the entities involved regarding its legality? If so, please describe those communications in detail.
It is widely known that there were several communications surrounding the true motives for the third amendment, and also the “court approved” lies that would be used to justify it.The classic legal maneuver, ask questions you know the answer to and hope they lie. We covered these in depth:

4. Under what legal authority was the Third Amendment authorized?

No legal authority allowed the third amendment it was in direct violation of all laws governing the GSEs. Mark Calabria and Mike Krimminger have made this very clear.

5. Prior to litigation, did DOJ discuss with Treasury and/or FHFA the need to assert privileges, including executive privilege, over certain documents?
This is an interesting one; I am inclined to think Grassley knows the answer and is hoping Holder lies. Again this is clearly aimed at the coverup that is so often far worse than the crime.

As I warned both here on the blog and often in private conversations the willingness of the Republicans to refrain from attacking would not last forever. And attack they did, for anyone with in-depth knowledge of our case the Grassley letter was clearly a carefully thought out indictment. Time is short for Obama to wrap things up and claim victory or allow a resounding victory turn into a crushing defeat.Now that his most critical accomplices have double-crossed him to delay much longer will be one of the poorest strategic decisions in political history.
Keep the Faith!