Fairholme Should Win Discovery in District Court vs Treasury/FHFA
- Posted by ToddSullivan
- on March 6th, 2014
As you read through this motion, it is really quite stunning. I’ve gone ahead and marked it up for you to make is easier…
FHFA produced 4300 pages for this case….only 25 were previously not public and they ADMIT they did not keep an administrative record in their actions here. This is unfathomable that a gov’t agency dealing with the issues it was dealing with kept no record……none.
If you throw out every other argument here, just this fact along give the Judge a reason to permit discovery
Further releasing only 25 previously non public documents is laughable. For the record, Treasury was better, releasing 205 of 4200 pages that were previously not public…..but it is still pathetic.
This is a slap in the face to the entire process and proof either the gov’t just assumes they will win, or has a hell of a lot to hide here. My guess it is a little of both.
The entire case from the gov’t still boils down to “we said we could do what we did so this case should be thrown out”. It’s absurd.
Plaintiffs claim that FHFA and Treasury worked together in placing the bet worth sweep in place and thus FHFA breached its fiduciary duty thus the sweep is invalid (boiled down to the most simple).
The gov’t response is “no we didn’t…case over”. They produced no documentation to back this claim at all……not anything. Check that, they produced one affidavit from a Mr. Ugoletti (council at FHFA) that states the action taken at FHFA were entirely appropriate. The only issue here is that this affidavit was dated two month AFTER the suit was filed….rendering is useless at best.
I fully expect Fairholme to be victorious here
Here is the motion and the proposed order:
To see more posts on any of the companies mentioned in this article, enter their stock ticker symbol in the search box.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Todd's investing strategy is essentially long with the rare short. He seeks to buy undervalued issues with an upcoming catalyst that will help them realized.... More »
aapl acas ackman aig AN bac BAM BBI bgp BPO buffett CC CODi CRE davidson dow einhorn employment ETFC f fairx FNMA fnmas ggp hhc housing IGOI jcp jmba joe mbi mcd mgm MO oesx rail sbux seth klarman SHLD spg spy theory trade VIC xom