The Fairholme v. Fannie Litigation
The epic fraud that is Fannie Mae and Freddie Mac will come home to roost for all of us …. soon…
I want to provide an update on the Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) court cases. In the Perry injunction on June 5th judge Lamberth suddenly delayed the oral arguments hearing indefinitely. This was suppose to be held on June 23rd. As I said on June 24 “Although Judge Lamberth could forego the Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) motions hearing if he felt one sides case was ironclad I personally would be surprised if this were the case. Others feel that Perry’s attorneys do have that strong of a case and the decision may be forthcoming.” It is looking like I was correct so far.
In the Fairholme lawsuit, we saw the two sides request 18 additional days beyond the five days Judge Sweeney allowed to file a joint protective order. Judge Sweeney was keeping the case on a good pace so why would Fairholme agree to an 18 day extension? Why not simply say the government is being unreasonable, and we need you to decide on this? It is more than peculiar that both cases took a mysterious pause at around the same times. Information on both of the cases is still mixed and scarce another peculiar coincidence?
And More Here:
A federal judge on Wednesday granted Bruce Berkowitz’s Fairholme Funds Inc. a motion to conduct discovery in its lawsuit against the U.S. government that challenges changes that the Treasury Department made to its bailout of Fannie Mae FNMA +1.53% and Freddie Mac FMCC +1.57%.
The ruling marked an initial victory for shareholders in what figures to be a long-running battle with the U.S. government over its 2012 decision to require Fannie and Freddie to send all of their profits to the government as part of the mortgage companies’ 2008 bailouts.