Fannie Mae Fairholme Victory: Alice’s rabbit Hole Part I

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Fannie Mae, Freddie Mac- Alice’s rabbit hole via

To truly understand the magnitude of the court victory in the Fairholme lawsuit this week one must first take a step back and review some of what has transpired leading up to this decision. The government attorneys have forced everyone Judge Sweeney included to follow them down Alice’s rabbit hole into a land where reality is suspended by an endless stream of lies. So I think it’s important to back up a little here and review this a little closer.

Fannie Mae (OTCB:FNMA), Freddie Mac (OTCB:FMCC) beginnings

This all began when the Government attorneys introduced the motion for a protective order with the absurd rationale that to release any documents concerning when and how the companies could be released or revealing any financial projections from years ago would have dire consequences. The release of this information would likely tank the MBS market causing interest rates to skyrocket and the world economy to crash. If they were allowed to withhold this information, our case would have been put in serious jeopardy which explains the downward pressure, we saw on our shares since early June.I didn’t think anyone thought she would grant such an absurd motion, but everyone is obviously not reading our blog.

They then followed this up with the request that if they were forced to produce all of the doomsday documents than they would want Judge Sweeney to classify virtually every document that they produced in discovery to be labeled “protected information .”To ensure that nothing they produced would ever see the light of day.

Judge Sweeney smashed the governments attempts to withhold this valuable information. Just as she has every step of the way, for many of these arguments have been repeated over and over by the government. She has forced them to comply and already I am sure hundreds of documents are flowing to Fairholme’s attorneys.

Fannie Mae (OTCB:FNMA), Freddie Mac (OTCB:FMCC) FOI

She also smashed their request that every document be labeled “protected information” In her order Judge Sweeney forced the government to justify why each item they seek to hide deserves such an extraordinary designation. In another huge victory, She also agreed with Fairholme attorneys that if a document could be released under an FOI request then it would not be able to be classified as protected.

Needless to say if judge Sweeney went along with the governments delusions our case could have been greatly hampered, and the ideal of open government crushed.

Regardless of how hard she try’s to appear objective To hear judge Sweeney make mention of the governments ” dire consequences “argument, it is like listening to someone refer to a crazy uncle. She actually took it a step further in Wednesdays hearing when we saw this exchange:

Fairholme attorney Mr. Colatriano : Your Honor, we certainly have no interest in being party to something that — Judge Sweeney: Causing doomsday? (From Wednesdays hearing)

She elevated it from mere dire consequences to doomsday in this amusing exchange.

I will be posting part two tomorrow. Keep the Faith!

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