Fannie Mae, Freddie Mac: Govt Securities Fraud? by TimHoward717
One statement buried deep within a document prepared by the Congressional Research Service on 8/13/13 makes it likely that high level government officials will be facing securities fraud charges .
ValueWalk's Raul Panganiban interviews Kirk Du Plessis, Founder and CEO of Option Alpha, and discuss Option Alpha and his general approach to investing. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with Option Alpha's Kirk Du Plessis
“What has Fannie Mae, Freddie Mac conservatorship done to stockholders and other stakeholders?
The powers of common stockholders, who formerly elected the boards of directors and approved certain enterprise actions, are suspended. FHFA as the conservator has assumed all of their authority. Previously, the common stockholders owned 100% of the GSEs. As a result of the warrants issued to the Treasury, they could own only 20% of the enterprises. In the long run, 20% of a healthy enterprise could be worth more than 100% of GSEs whose liabilities exceed their assets. In the short run, the price of the GSEs’ common stock has declined, but if Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) recover, stockholders would arguably be better off compared to their situation at the time that conservatorship was undertaken.”
This now chilling question and answer taken from a document titled “Fannie Mae’s and Freddie Mac’s Financial Status: Frequently Asked Questions” are what both a legal scholar and an attorney whom specializes in securities fraud have focused on recently. They point out that this statement was clearly designed to allay current share holders fears and lure in new investors . When viewed in light of the secret treasury memo from 2010 and the governments flagrant theft of the private shareholders profits they see no option but to charge those responsible with felony security’s fraud. The precedent any other option would set would open the door for a flood of appeals in similar security fraud convictions. Not to mention any pending or new cases would be grossly compromised.Imagine a defense attorney pointing out the similarity of their clients alleged crime and the governments conduct in our case.
Fannie Mae Freddie Mac: Several other incriminating documents yet to be seen
With limited discovery set to commence in relation to the governments motion to dismiss in the Fairholme lawsuit and full blown discovery not far off we are sure to see several other incriminating documents. This ever growing scandal could ensnare several past and present officials and politicians. The shear breadth and depth of this has the potential to explode into a national crisis. Needless to say pressure is growing in DC to end this before it goes much further. Keep the faith!
I have attached the two documents that were referenced and for the benefit of all involved I have attached a link citing the recommended sentencing guide lines for these types of crimes.
8:13:13 Fannie Mae’s and Freddie Mac’s Financial Status- Frequently Asked Questions
treasury memo (smoking gun) 2