TINA · @DoNotLose
7th Sep 2018 from TwitLonger
$FNMA #FANNIEGATE
Court info: 3 cases before us and did not start until approx. 11am
Hindes did the the talking Steele was there at the table.
Bottom line (wild guess) Hardiman Krause in our corner Bibas? Hindes led off with the opening same as the outline we read last week all the details. The judges had briefs to follow and did not as interrupt.
Bibas asked about HERA restrictions against legal challenges and outcomes from other trials (dismissals) and Hindes expounded on the Delaware law precluding 100% dividends at the expense of other preferreds. Krause and Hardiman asked about penalty charges and Hindes pointed out that dividends missed required that and was then asked if just cancelling the third amendment would be OK. FHFA guy then came on with the same warped story about the Govt has a third of a trillion earmarked to save the taxpayers.
He did agree that beginning 2012 GSE were in profit mode. Treasury guy came on and said 2012, 2013,2014 were good but it was in decline since then
and gse needed bucks recently. There were requests for clarification from the bench and govt responded with half truths and BS. Back cones Hindes for rebuttal and explained that 2012 and 2013 were very strong because the revenue was supplemented with loan loss reserve reversal because they were not needed in the first place Chief Judge jumped on that and asked DID THE GSES NEED MONEY IN THE FIRST PLACE. Bench asked other questions about profit outlooks and concluded with they will study the issue and decide. Govt guys jumped up to speak but were slapped down and told to "put anything else in writing"