Jim Parrott, former economic advisor to President Obama all but admitted in deposition that Treasury and FHFA violated HERA. It all become pretty simple really. FHFA is the sole regulator of the GSE’s. They are to act at the direction or no one and their sole mission was to return the GSE’s to a “sound and solvent” position. That is it…
Parrott affirmed what plaintiffs have been alleging for years…..Treasury, not FHFA was pulling the strings, FHFA was NOT acting as the sole regulator of the GSE’s and thus both were in violation of HERA. Since they violated HERA, it is time for a trial and the government’s motions to dismiss ought to be ruled against in the courts they are pending.
At some point in August I expect the circuit court to toss Lamberth’s decision to throw the case before him out before he heard a shred of evidence and return to the case to him with instructions (to get his shit together).
Investors Unite has a good post on this