Posted on June 8, 2017

The Roberts Plaintiffs delivered their opening brief to the Seventh Circuit this week in their continuing effort to unwind the net worth sweep, and a copy is attached to this e-mail message,  “Any interpretation of HERA this Court adopts will apply with equal force to the provisions of FIRREA that govern bank conservatorships and receiverships,” the Roberts Plaintiffs caution the Seventh Circuit in the penultimate paragraph of their opening brief.  “If federal conservators are held to have the unchecked power to nationalize their wards, no matter how profitable, it will be much more difficult for banks and other financial institutions to raise capital during future periods of economic instability.  The cost of capital for troubled financial institutions will rise, financial regulators’ work will become more difficult, and the number of bank failures will increase.  While the Net Worth Sweep has so far been immensely profitable for the federal government — reducing the federal deficit by $130 billion thanks to excess ‘dividend’ payments — regulators may live to regret the precedent Defendants ask this Court to establish.”17-1880-0017

2 Replies to "$FNMA #FANNIEGATE"

  • DJ Vanf
    June 8, 2017 (4:11 pm)

    What do you suppose is going on with the 3500 + documents that were delivered to Fairholmes lawyers ? I find it strange we have not heard a peep out of that deal – any thoughts?

  • RayRay
    June 8, 2017 (4:53 pm)

    I wonder why no one is talking about the TBTF Banks actually acquiring the equity of Fannie and Freddie? What will happen to the monthly mortgage payment of every mortgage in the country? Bill Ackman states in a television interview, that they have calculated and believe that mortgage payments will nearly double under the control of aforementioned Banks. No one has kids grandchildren, friends, moms and dads that might be completely devastated by this eventuality? People give your head a shake! The Fannie and Freddie Net Worth Sweep is the Swamp.

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