Fannie, Freddie Parent Files Strawman Objection Against BAC Settlement - Sole Purpose Is To Strengthen The Settlement

Tyler Durden's picture

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IMA5U's picture

And that's why Buffet got a sweatheart deal on BAC and QE3 chatter dominates the media.

 

It is all just a smoke screen so people do not focus on this reality

tekhneek's picture

N-o-v-e-m-b-e-r P-U-T-S.

moonstears's picture

Why, I did just that, today, got me some Nov BAC Ps at $7.50 strike! I hope to fuck you're smarter than me, as we're thinkin' the same, and I KNOW "me"!

macholatte's picture

 

It's another stall, posturing, a game of file a motion and keep the litigation in limbo for another 30, 60, 90 days. More legal fees. BAC probably has 20-30 days to respond and then another 20-30 days to be heard by the court and then another 10-20 days to get an order written and signed off and so on and so forth. No settlement likely before Spring 2012.

IMA5U's picture

a sinking stock price can force the issue faster.  BAC's credit spreads will continue to blow out and the rest of the banks will follow.

Joebloinvestor's picture

Wanna bet Warren sells after the election when Barry (if they don't stuff the ballot box) is gone?

 

Sometimes even preferred share holders take a kicking.

IMA5U's picture

he won't sell.  that 5bn gives him more leverage over the government for more sweatheart deals.

spanish inquisition's picture

So government bail out money goes in to rescue banks. Banks need additional help. Uncle Warren goes in to rescue banks with presidential guarantees and leaves with boatloads of governement laundered money.

Robslob's picture

General Motors anyone...its whats for dinner!


Rollerball's picture

I'll warrant you Warran T Smorgasbord has preferred warrants.

Sequitur's picture

This was exactly my thought when reading the other filing in yesterday's ZHedge post. This latest post is important. Yesterday's filing was devoid of any substance. It was a token placeholder.

Now look at this one by FHFA. No one files an objection and puts as their leading paragraph praise for the very settlement they are objecting to. The only thing that matters in this document is the last sentence phrase: they are formally preserving their ability to speak up when it's time for the court to rule. And the FHFA can say and file anything it wants (read: ordered to say by the Administration, Buffet, Bank of America, and the banking cabal).

The politics surrounding this attempted cramdown must be immense.

chunga's picture

Translation: taxpayers stuffed with the tab, bonuses for TBTF, govt. enablers get their vig and enhance their CVs for when they move into the "private sector". Oh yeah...homeowners due process down the tubes as a delightful creamy topping.

MachoMan's picture

How the fuck is this not a per se violation of fiduciary duty/loyalty?  You can't eat your cake and have it too.  Either taxpayers got had via the GSEs and this shit has to get put back on the assholes up the chain OR the federal government has to expressly admit that the entire matter is a sham and that the GSEs are in fact going to hold the toxic sludge in a bailout to the banks, no matter the cost, and taxpayers will be forever damned (and they'll need a legal argument for how they're allowed to do so).

Federal False Claims Act?  Qui Tam?

This is complete and total bullshit.  As stewards and recipients of federal funds and guarantees, they have no ability to do anything other than to seek putbacks and/or rescission of the agreements whereby toxic sludge was put onto their books...  If the assets had appreciated in value since their transfer to the GSEs, I could understand wanting to keep them...  but we all know the opposite to be true...  and, as a result, there can be no basis for anything other than seeking to completely rid themselves (the GSEs) of the burden.

 

chunga's picture

Macho...do it! Qui Tam baby. There are a few going on now but are being kept very quiet!

MachoMan's picture

I can't do shit as I don't have a client with non-public information...  presuming this is even the type of thing covered by that...  I would think it's a possibility when the salesman is the originator, etc.  Of course, with TARP, etc., I'm not sure how that would work given the federal government can't sue itself...  incestuous bunch of dinglehoppers.

On a side note, I've got a gut lock on the state for a gigantic amount of money if the freaking supreme court wouldn't have dumbassed the FFCA to hell and prohibited the federal government from suing the states under it.  What the hell does separation of powers have to do with a situation where the federal government gives the states money?  If nothing else, it's basic contract law.  Unless of course the courts fuck it up.  The dissent was hilarious...  can't remember the case though.  Just remember the dissent basically took a shit on the majority.

topcallingtroll's picture

This one fact alone should convince everyone that we are ruled by an oligopoly.

Seriously isn't it time to start hanging some people?

Catullus's picture

Perhaps it's time to start lining up CUSIP numbers on bonds issued by countrywide and public pension funds. You know, just to see who is being ring-fenced out

unununium's picture

Chromosomes are aligning inside BAC, and parties are lining up outside, positioning themselves for the unholy shit-supernova.

 

moonstears's picture

Fellow ZHers, I'm a lowly, self described, armchair economics expert :]. Many of you are surely much bigger picture experts...actual econ experience and legends outside your own minds, unlike myself, so please answer the following: If BAC can borrow at .25 % at the discount window, why pay uncle Warren 6%??????  

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