Fannie Mae: Perry Capital Wants Fairholme Discovery Documents

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Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) Proposed motion in Perry Injunction: Black Stone presentation proves government fraud via

I am posting the new proposed motion in the Perry Injunction. Perry is now joining with Fairholme in requesting that the Treasury’s incomplete administrative record include the Blackstone presentation as well as everything that is coming out of discovery in the “Fairholme Lawsuit”. Anyone else think it may not be a coincidence that they make this request after thousands of documents have been turned over by the government? Just a thought. There is much to discuss in this motion, and I am working on a much more detailed analysis. We are getting a clearer picture in regards to motive and cover up with respect to the growing securities fraud case against the U.S. government. Keep the Faith


Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) ARGUMENT


Perry Capital now joins Fairholme’s requests to this Court for supplementation of the Record. See Fairholme Mot. to Supplement 14-27; Fairholme Reply 9-22. The APA requires courts to review the “whole record,” 5 U.S.C. § 706, meaning “neither more nor less than what was before the agency at the time it made its decision.” Marcum v. Salazar, 751 F. Supp. 2d 74, 78 (D.D.C. 2010) (citing IMS, P.C. v. Alvarez, 129 F.3d 618, 623 (D.C. Cir. 1997)). The Record filed here, however, has gaping holes. As Fairholme has explained, some of those gaps are known: key financial projections and associated records referenced by other documents, the missing Freddie Mac projections, materials from the Department of Justice, and privilege logs to justify any documents that Treasury and FHFA have withheld. See Fairholme Mot. to Supplement 17-20; Fairholme Reply 10-17. The government’s filings here suggest other gaps as well, further justifying supplementation of the filed Record. See Fairholme Mot. to Supplement 20-27; Fairholme Reply 17-22.


Now, the recent revelation of the Blackstone Presentation further bolsters Fairholme’s request for relief. It is clear that the document should have been included in Treasury’s Administrative Record all along. As a Treasury spokesman explained, the Blackstone Presentation was a “part of the policy making process.” Freed, supra (“‘As part of the policy

making process, Treasury routinely engages with key stakeholders, market participants and consumer advocates. Treasury did not issue a Request for Proposals, and no contract was awarded,’ [a Treasury spokesman] said Tuesday in an e-mailed statement.”). And while Treasury included other financial analyses of the Companies in the Record it filed, those documents purport to support the government’s arguments by showing gloomier outlooks. See

Treasury 3285 (Moody’s Presentation to Treasury: Fannie Mae and Freddie Mac Capital Positions (Apr. 4, 2012)); see also, e.g., Treasury 1893 (Moody’s: Plan to Raise Fannie Mae and Freddie Mac Guarantee Fees Raises Question of Support (Sept. 26, 2011)); Treasury 3248 (Deutsche Bank: The Outlook in MBS and Securities Products (Mar. 14, 2012)).


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