Well, if there was any question before today we know now who is out of aces. Ironically the day after we laid an ace on the table our government counters with what can only be described a desperate last gasp.In the past I must admit that they countered some of our best moves with rather decent counter attacks such as the last minute addition of Obamas out of context “wind down the GSEs” comment in Phoenix last year.
Let’s examine today’s motion to dismiss: https://timhoward717.files.wordpress.com/2015/06/6815-defendant_s-supplemental-motion-to-dismiss.pdf
Peter Chapman who is a foremost expert on cases such as this had this to say:
“Our Government has filed a Supplemental Motion to Dismiss in Fairholme v. U.S. this afternoon. Our Government wants all claims by all shareholders who acquired Fannie or Freddie shares after Aug. 17, 2012 — the date of the Third Amendment — to be dismissed as a matter of law because, our Government argues, they lost nothing. The argument is nonsense. In America, the bundle of rights that attach to a security do not change based on the identity of the holder. Here are some legal citations for that proposition:
— In re Lorraine Castle Apartments Bldg. Corp., 149 F.2d 55, 57-58 (7th Cir.), cert. denied, 326 U.S. 728 (1945) (“[T]he prices which security holders pay for their securities in no wise affects the measure of their participation in reorganization or their voting power.”);
— Standard Gas & Elec. Co. v. Deep Rock Oil Corp., 117 F.2d 615, 619 (10th Cir.), cert. denied, 313 U.S. 564 (1941); and
— Security-First Nat’l Bank v. Rindge Land & Navigation Co., 85 F.2d 557, 561 (9th Cir.), reh’g denied, 86 F.2d 3 (9th Cir.), cert. denied, 299 U.S. 613 (1936), reh’g denied, 300 U.S. 686 (1937) (“The legal value or property right in an obligation is the right to recover from the maker to the entire extent of his promise to pay. The consideration given for a security by the holder thereof is immaterial.”).
A copy of Judge Firestone’s Textainer Equipment Management decision on which our Government relies is available at http://bit.ly/1IyxePx and is easily distinguishable from the shareholder claims asserted in Fairholme v. U.S.”
To me it is crystal clear what is going on:
Last June 2nd a filing in the “Fairholme lawsuit” revealed: FAIRHOLME FUNDS INC. AND THE FAIRHOLME FUND’S ANSWER TO DEFENDANT’S FIRST INTERROGATORY. Interrogatory No. 1: Identify all shares of stock in the Enterprises owned by plaintiffs at any time. https://timhoward717.files.wordpress.com/2014/06/corrected-appendix.pdf
The government had only one question for Fairholme, their motive clearly had todays motion in mind.Remember this was a year ago.
Now look back at the lengths they have gone since last June to stall and delay this case using every procedural trick in the book to postpone turning anything over in discovery.They then went to extraordinary lengths to try to hide anything that came out of discovery from the public.
They knew like I have said so many times, that for them to comply with discovery means their demise.The clock ran out, and they were forced to allow discovery to begin and Just as predicted through discovery and other sources their defense lies in tatters.Depositions have begun, and we know for a fact that their circular draw defense is in serious jeopardy. We have watched as Mario Ugoletti was forced to address the lies he told in the Perry Injunction.
Wouldn’t they have used this motion sooner before they got in the perilous position they are in now? Certainly they would have but why didn’t they? They know it’s an extremely flimsy attempt and it is sure to fail.It is the act of the very desperate; their entire defense is crumbling, and they know it. Their lies are about to be exposed; the truth stands poised for victory. We have waited a long time for this moment, they are now, finally about to reap what they have sown. Re-read the last several posts concerning Ugoletti, it will become crystal clear what is transpiring.
I want to thank everyone who dedicated so much time and energy in helping to distribute the critically important white white paper by Trevor Thompson today: https://drive.google.com/file/d/0B58sMbhyeWL2dEFxQmVtcV8xNk0/view
I assure you the next paper will be equally effective. Keep The Faith!
Peter Chapman was kind enough to locate and email me the Maniere decision which was one of the cases cited in the governments latest motion to dismiss.Peter also had this to say:
“The Maniere decision doesn’t quite say what our government wants it to say. Fairholme is not claiming third-party beneficiary status in its lawsuit or anything close to what Mr. Maniere was after. Fairholme complains that our government expropriated its securities and it wants our government to write it — and every other similarly situated preferred and common shareholder — a check for just compensation under the Fifth Amendment for the taking of private property for public use.”
Leadership Conference recommendations 6/15. Here we go.
Leadership conf 6:15