Richard X. Bove, Vice President Equity Research at Rafferty Capital Markets, highlights Retired Judge Myron Steele filling an amicus brief in the Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) lawsuits.
Pressure continues to build for a negotiated settlement. Retired Judge Myron Steele files suit in Delaware. President Obama golfs with Ron Kirk, a key hedge fund counsel.
Judge Myron Steele was Chief Justice of the Delaware Supreme Court prior to his retirement. He had filed an amicus brief in the Fannie Mae lawsuits making two key claims. The first is that the 3rd Amendment on the company’s senior preferred stock is unenforceable. Second argues that the Amendment breaches Delaware law which explicitly states that preferred shareholders cannot take all the profits of a company leaving nothing for common shareholders.
Judge Steele has now gone one step further. He has filed a lawsuit under his own name in the Delaware court making the same arguments. Since Fannie Mae is a Delaware Corporation, if the courts in that state find for Judge Steele, the game is over for the Treasury. The other lawsuits will be moot since Delaware has claimed that Fannie Mae has broken the law.
Fannie Mae: President Obama golfing with Ron Kirk
Todd Sullivan reported in Value Plays that President Obama played golf with ex-President Clinton and lawyer Ron Kirk a couple of weeks ago. Mr. Sullivan also published a photo of the threesome on the golf course.
Ron Kirk was mayor of Dallas and a special trade representative appointed by President Obama. Mr. Kirk now works for Gibson, Dunn, and Crutcher Perry Capital’s law firm. Perry is suing the FHFA and the Treasury seeking the redress of the Fannie Mae Third Amendment.
Mr. Kirk also had dinner with the President as one of a group of eight people including ex-Attorney General Eric Holder. Six days following the golf outing, the White House filed suit to get the Discovery documents in the Lamberth Appeal case.
The timing may be a coincidence or it may suggest that the White House could possibly lose control of Fannie Mae. If the Delaware courts find that the Treasury has broken the law, then it must pay back all of the excess funds that it has taken from Fannie Mae.
Also, if the courts find against the FHFA and the Treasury, the President could possibly lose the right to make a unilateral decision as to how Fannie Mae should be run. The advisors might be telling him this.
If so, negotiations to solve the Fannie Mae issue may be near.
Don't blow the kid's Christmas $... The govt is finally on the run and Judge Sweeney is looking to drop the hammer - release imminent due to this obvious theft by deception. Just sorry that it has taken this long.
You couldnt be more correct fulliotomatix - 100% release is the only acceptable re course and re capitalization - eom.
It never made any sense to close down FNMA or Freddie - the only reason the bashers keep up the rhetoric is to squeeze out a few more cents... Even the Bashers need to buy a home. This deal is about to come to an end and the Govt knows the courts have them in there sights. The Shorts are about to lose Big - it has been a long fight but the finish line is in sight Longs!
Move to Russia fool - they will put you up in subsidized housing and give you $2 a month - your ignorance is frightening about FNMA and the fundamental role they play in our housing market - but then again, you cant fix Dumb now can you...
BS - we win and the courts are indicating the Treasury broke the law plain and simple.. The Delaware courts are all over this and the Govt knows it - just a matter of time -
The tool you are.... Move to Russia idiot. You obviously rent a one bedroom apartment in a bad area of town.
Game over - last one to leave turn the lights off on this ponzy scheme... damn shame they screwed us like they did. Lost my A _ _