Fannie Mae, Freddie Mac Fairholme Status Conference

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documents. I hope that will satisfy you. You will see what comes and hopefully it will be responsive to your requests. If not, I know I will hear from you.
Plaintiff: The truth is you will hear from us much sooner. The process the Court established in April with its initial case management order made clear that when there was a discovery dispute, the parties would have to get together for 7 days, and after the objecting party would have to provide an objection. That is what we already went through.
As we read the Court’s discovery order, it accepted a lot of the Govt’s requests, but did not grant the Govt. relief from responding to over half of our requests.
We will bring these issues to you because these are serious questions that we will have to raise in a motion to compel to force the Govt. to describe how our requests are not directly related to the jurisdictional questions of whether the FHFA acted at the Treasury’s behest.
On ESI hit reports, we will have to add this to the motion to compel because producing the reports is standard practice, we are not aware of it being attorney work product, and its purpose is to monitor production and ensure the process is open.
We will bring forth a motion within a week’s time. I would hope the Govt. would be willing to respond very promptly, and I would suggest a week for response.
Court: I will allow the Govt. to have the appropriate time to respond under the Rules, and I will request that you attempt to negotiate resolutions to the disputes if possible as required under the rules. The whole purpose of this process is to allow the Plaintiffs to have their day in court and to allow them to discover whether the Govt. directed the Conservators to take certain actions, whether they were really the guiding force and therefore they were not independent, at least for the purposes of the Net Worth Sweep.
If the Conservators were taking their marching orders from within the US Government, regardless of the branch, or working in conjunction with them, that information must be brought forward. If this information must be confidential, then that information must still be provided to the Plaintiffs.
It’s not fair for the Govt. to say to the Plaintiffs that Fannie and Freddie are independent if there are documents showing that there was Govt. control.
I don’t want instructions being given to these entities saying they don’t have to turn over documents if this is what they say. Defendants cannot invoke privilege to prevent the Plaintiffs from entering the courtroom door. I know you know this, but you can go back and tell it to the clients.
If the dispute cannot be resolved, I will see motions.
I understand your respective positions. Please see if you can negotiate to narrow the issues.
8:13:14 transcript 717Fair

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