Judge Sweeney Unleashes The Truth
We are currently poring over the explosive documents released by Judge Sweeney last night.
The full documents can be found here: https://timhoward717.files.wordpress.com/2016/04/unsealed-fannie-freddie-documents.pdf
We will be updating this post regularly throughout the day adding new material as we go. There are multiple bombshells, and I strongly believe that this will historically mark the moment that our legal victory began. I cannot describe the feeling that we are finally seeing what many of us knew all along confirmed in these documents. Our government has repeatedly lied and had the majority of those in the media and DC as their willing and complicit accomplices. We have been steadfast in our quest for the truth. The ramifications of last night’s release are sure to reverberate through all aspects of our cause.
Last summer when we first had a glimpse of the redacted documents coming out of the Fairholme lawsuit discovery we issued a warning to many of our key allies.
Which was in this post:
I believe Judge Sweeney’s decision has provided us with a nice glimpse into how she will rule on the motion to compel.I also believe that these documents will provide the attorneys in the Perry appeal more than enough evidence to secure a victory in the Perry appeal. We intend to delve deeply into the political ramifications of this soon but do not want to distract from this key legal victory now. Please check back throughout the day and night as we will be adding more to this post. Keep the Faith!
EDIT , 1:30 PM
DOCUMENT 1, EXHIBIT C: PORTIONS OF THE DEPOSITION OF SUSAN MCFARLAND, FORMER FANNIE MAE CFO
This document is critical. A key portion of the Government’s case relies on the claim that they didn’t know the DTAs were going to be restored, and that they believed Fannie and Freddie were going to need continued Treasury assistance to meet their dividend. McFarland blows this claim out of the water.
Here’s a clip from pages 44 and 45 of the deposition:
“I had, shortly before [the sweep], had a meeting with Treasury whereby we reviewed our forecasts. I had expressed a view that I believed we were now in a sustainable profitability, that we would be able to deliver sustainable profits over time. I even mentioned the possibility that it could get to a point in the not-so-distant future where the factors might exist whereby the allowance on the deferred tax asset would be released. We were not there yet, but, you know, you could see positive things occurring.
So when the amendment went into place, part of my reaction was they did that in response to my communication of our forecasts and the implication of those forecasts, that it was probably a desire not to allow capital to build up within the enterprises and not to allow the enterprises to recapitalize themselves.”
According to the deposition, this meeting was on August 9th, just eight days before the sweep. And Treasury officials clearly took notice; here’s another clip from the deposition:
‘Q. Would it surprise you to know that there’s an
e-mail from Tim Bowler where he’s saying, “We need to
make a renewed push on the net worth sweep”?’
This is Treasury official Tim Bowler, who is tightly connected with the individuals who advised the President and White House staff on housing (see here).
More to come…
Edit 12:06 AM 4/13
The Mockery Can Stop?
I hope today’s disclosures put a stop once and for all to the otherwise intelligent people make believe that they believe the government. It is honestly painful watching national reporters like Nick timiraos and John Carney at the WSJ feign belief in the government’s outrageous lies to preserve their coveted access to the halls of power. It’s safe to say that Gretchen Morgenson won’t be getting any calls like this:
BY MR. PATTERSON:
Q. So there may have been other Hill staff that she contacted; is that what you’re —
A. You would have to ask Megan Moore.
Q. And then an entry above that is “Nick Timiraos from The Wall Street Journal.”
Do you know why Treasury was contacting him before the public announcement of the net worth sweep?
As I pointed out some time ago, no high-level officials will dare even hint that the reason for the sweep was to save the companies,they outright admit that it was to wind them down and replace them.So please stop the nonsense folks and stop trying to defend the indefensible.
Judge Sweeney Silences The Critics
Today’s disclosures provide us with a keen glimpse into Judge Sweeney’s current mindset. In the beginning, she signaled that she would be objective and tough but as time stretched on many began to doubt her willingness to take on our government. Yesterday’s action confirms that she indeed is serious, and I hope this silences any speculation to the contrary.
Based on her actions here the administration should be prepared to start turning over the thousands of documents they have been trying to hide with their privilege claims. I am hesitant to try and predict the outcome of the motion to compel in the Fairholme lawsuit but with today as our guide, I’d say we are looking pretty good.
This picture was used by the NYT to promote Gretchen’s article on Twitter tonight. I never thought I’d see the day where a major media source would be using quotes that here on the blog have been commonplace but no one else dared speak.
Gretchen Morgenson summed up today’s events very well
“In a deposition taken last July, for example, Susan McFarland, Fannie’s former chief financial officer, said she told high-level officials at the Treasury on Aug. 9, 2012, that the company was, in fact, “now in a sustainable profitability, that we would be able to deliver sustainable profits over time.”
“In addition to telling Treasury officials in early August 2012 that Fannie would be able to sustain profits, Ms. McFarland said that Fannie could soon reap about $50 billion in income because of the reversal of an accounting entry, known as a deferred tax asset, required under accounting rules when the company began earning profits again.
A copy of the presentation that Ms. McFarland made to the Treasury was also unsealed. It contains 10 years of internal financial projections from Fannie, indicating that the company would not require further assistance from taxpayers.”
““I believed we were now in a sustainable profitability, that we would be able to deliver sustainable profits over time… We were not there yet, but, you know, you could see positive things occurring.”
From a deposition with Susan McFarland on July 15, 2015.
A little over a week after her meeting with the officials, the Treasury announced the profit plan with the Federal Housing Finance Agency, the overseer of Fannie and Freddie.”
In her deposition, Ms. McFarland said that she believed her conversation with the Treasury propelled the government to change the terms of the bailout to seize Fannie’s and Freddie’s profits. “When the amendment went into place,” Ms. McFarland testified, “part of my reaction was they did that in response to my communication of our forecasts and the implication of those forecasts, that it was probably a desire not to allow capital to build up within the enterprises and not to allow the enterprises to recapitalize themselves.””
I want to recognize both her and the New York Times for bravely standing up to our government and digging for the truth rather than parrot their lies.
I hope they continue to be examples of true journalism and hope others follow the example that some of us have presented. The documents released today contain a virtual treasure trove of evidence. This will make our job far easier as we integrate it into our growing mountain of evidence proving beyond any shred of doubt that our government has done nothing but lie to the American people about this critical topic.
This is the the final edit of the day,it has been a very long 24 hours but worth every minute. Keep the Faith my friends, as I have said time and time again the truth is on our side and if we continue to believe it will never let us down.