One has to wonder why James Lockhart - who is currently employed by WL Ross - failed to mention his statements regarding the value of the stocks in Fannie and Freddie when he announced the conservatorship back in 2008. Then he said:
From Sept 7th 2008:
Seventh, in order to conserve over $2 billion in capital every year, the common stock and preferred stock dividends will be eliminated, BUT THE COMMON AND ALL PREFERRED STOCKS WILL CONTINUE TO REMAIN OUTSTANDING. Subordinated debt interest and principal payments will continue to be made.
In Lockhart’s fact sheet from 2008 regarding the common stock he said:
Q: What happens to the Company’s stock during the conservatorship?
A: During the conservatorship, the Company’s stock will continue to trade. However, by statute, the powers of the stockholders are suspended until the conservatorship is terminated. STOCKHOLDERS WILL CONTINUE TO RETAIN ALL RIGHTS IN THE STOCK'S FINANCIAL WORTH; AS SUCH WORTH IS DETERMINED BY THE MARKET!
On Sept 25th before Congress he said:
I also recognize that many employees at each company have been working extremely hard through years of remediation and through the past year of market volatility. Employees have lost personal savings as a result of the plummet in their company’s stock price and they have been working, and continue to work, long hours in the face of uncertainty. To them, I say thank you and pledge that, as conservator, WE SHARE THE COMMON GOAL OF STABLIZING YOUR COMPANY WHILE ENSURING IT CONTINUES TO SERVE ITS PUBLIC PURPOSE OF PROVIDING STABILITY, LIQUIDITY, AND AFFORABILITY TO THE MORTGAGE MARKET.
Investigators should start reviewing Lockhart's previous comments immediately. With discovery proceeding in Fairholme’s lawsuit vs the Treasury and the FHFA his recent contradictory statements should get him exposed and/or deposed under oath.
Wow, excellent post. You should send what you just wrote to the media source who wrote that article a few days ago. This a perfect example of the two faced, manipulating slime balls we are dealing with in Washington. They lie as easy as if they are taking a drink of water. Shamefull