Fannie Mae, Freddie Mac Saga: Fairholme Notches Another Victory

Fannie Mae, Freddie Mac: Fairholme in Another Victory Over Treasury, FHFA

Judge Sweeney is not messing around with this litigation…it is going forward.

On 2/26 Sweeney granted $FAIRX discovery in their case vs Treasury/FHFA re: Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA)

On 3/17 defendants filed a motion to stay discovery stating : “…requests that the Court stay its February 26, 2014 order (Order) pending resolution of the dispositive issues in the Government’s motion to dismiss with respect to which there is undisputedly no need for discovery. In the alternative, the United States respectfully asks the Court to reconsider and vacate the Order because discovery prior to resolution of the motion to dismiss is inappropriate.”

I’m gonna go out on a limb and guess there isn’t much judges dislike more than being told their ruling is “inappropriate” and that the reasoning is “there is undisputedly no need for discovery”. That basically translates to gov’t lawyers telling Judge Sweeney, “you don’t know what you are doing”.

Here is their motion (I’ve marked it up w/notes):
Motion to Stay

On 3/19 here was Sweeney’s response:

Fannie Mae, Freddie Mac Sweeney response

For those who can’t see it she said: “Denied, get your ass (or something to that effect) in court 3/21”

via valueplays

About the Author

Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and is a contributor. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”.