November 2018

Friday November 30 2018

New filing in Bhatti vs. FHFA, click here to view

Peter Chapman writes, “The Bhatti Plaintiffs delivered their reply brief to the Eighth Circuit today.”

DS News: Examining FHFA’s Capital Standards Proposal

Tuesday November 27 2018

Bill Maloni’s GSE Blog: GSE Cats and Dogs and One Big Turkey

Monday November 26 2018

Delaware Bay Company: “Release the Hostages”

Wednesday November 21 2018

Wall Street Journal: Partisan or Deal Maker? Maxine Waters Rises as Banking Industry’s Overseer

Tuesday November 20 2018

New filing in Owl Creek vs. United States, click here to view.

Peter Chapman writes, “Owl Creek and other Jones Day clients submitted an unopposed motion to Chief Judge Sweeney today to correct some statements contained in their sealed brief opposing the government’s motion to dismiss about when they acquired their preferred stock in the GSEs. The corrections indicate that these shareholders purchased some of their securities prior to the conservatorship and purchased more thereafter.”

New filing in Fannie/Freddie Consolidated Class Action, click here to view.

Peter Chapman writes, “FHFA, Fannie and Freddie delivered a reply in support of its partial reconsideration request to Judge Lamberth today, urging him again to dismiss the shareholder-plaintiffs’ implied covenant claims.”

New filing in Rop vs. FHFA, click here to view.

Peter Chapman writes, “The Rop Plaintiffs delivered a copy of Treasury’s brief filed in the Eighth Circuit in Bhatti v. FHFA to Judge Maloney late last week. The Rop Plaintiffs point Judge Maloney to statements by Treasury in its brief that are at odds with FHFA’s contention that it is a constitutionally structured agency.”

New filing in Wazee vs. FHFA, click here to view.

Peter Chapman writes, “FHFA delivered its motion to dismiss Wazee’s complaint to Judge Alejandro in Philadelphia yesterday evening.”

New filing in Wazee vs. FHFA, click here to view.

Peter Chapman writes, “Treasury has filed it’s motion to dismiss Wazee’s complaint, yesterday evening.”

Scotsman Guide: Bipartisanship has a shot in the new Congress

Politico: 6 ways Washington could make housing more affordable

DS News: Public Policy Institute Asserts its Recommendations for FHFA

Monday November 19 2018

New filing in Collins vs. FHFA, click here to view.

Peter Chapman writes, “In a letter dated today, the Fifth Circuit has asked the parties to focus their rehearing arguments on two topics:

(A) With respect to the remedy argument, expressly state whether, and under what circumstances, the proper remedy in a separation-of-powers case is to set aside the agency actions . . . or to excise the unconstitutional portion of the statute?; and

(B) In practical terms, what would setting aside the Net Worth Sweep entail and how would it affect other functions of the FHFA?”

American Banker: Will Democrats’ midterm success spur progress on GSE reform?

American Action Forum: Fantasy Capital Requirements

Thursday November 15 2018

New filing in Washington Federal vs. U.S., click here to view.

Peter Chapman writes, “Washington Federal filed a redacted copy of its amended complaint this afternoon for public consumption. Washington Federal continues to tell Chief Judge Sweeney the conservatorship proceedings were a sham from the beginning.”

New filing in Bhatti vs. FHFA.

Peter Chapman writes, “Treasury and FHFA delivered their briefs to the Eighth Circuit yesterday, urging it to affirm Judge Schiltz’s decision dismissing the Bhatti Plaintiffs’ lawsuit complaining about the constitutionality of FHFA’s structure in an attempt to undo the Net Worth Sweep.”

Click here to view Treasury’s brief.

Click here to view FHFA’s brief.

New filing in Jacobs vs. FHFA, click here to view.

Peter Chapman writes, “The Third Circuit released its opinion this morning, “reject[ing] the shareholders’ challenge on all fronts” because it “would restrain or affect [FHFA]’s exercise of its powers as conservator.”

Reuters: U.S. court rejects challenge over Fannie Mae, Freddie Mac profits

Wednesday November 14, 2018

New filing in Collins vs. FHFA, click here to view.

Peter Chapman writes, “The Fifth Circuit entered an order yesterday granting the parties’ rehearing requests and permitting oral argument.  Appellant briefs are due by Dec. 12, 2018, and responsive briefs are due by Jan. 11, 2019.”

DS News: An Update on GSE Conservatorship

Tuesday November 13, 2018

The Real Deal: Trump likely to take lead on Fannie/Freddie reform now that Dems control the House

Monday November 12 2018

Blueprint for Restoring GSEs to Safety and Soundness: One Year Later

Wall Street Journal: Mortgage Industry Braces for Trump Administration to Make Changes at Fannie, Freddie

American Banker: Firm advising GSE investors updates plan to end conservatorships

Inside Mortgage Finance: What We’re Hearing: The ‘Hensarling Effect’ / Team Trump, Not Congress, Will Reshape the Fannie and Freddie / Timing? / Selling Servicing Rights to Unleash Revenue / Ocwen’s Head Count

Housing Wire: The future of mortgage finance? 6 key takeaways from the midterm elections

Thursday November 8 2018

American Banker: Divided Congress = gridlock for financial services policy

ABA Banking Journal: The 2018 Midterms and Their Impact on Banking

Markets Media: Wall Street Readies for Democratic House

Wednesday November 7 2018

DS News: A Change of Order

American Banker: Should industry fear Waters-led banking panel?

Tuesday November 6 2018

New filing in Fannie/Freddie Consolidated Class Action, click here to view.

Peter Chapman writes, “Fairholme, Arrowood and the Class Plaintiffs tell Judge Lamberth there’s no reason to reconsider his Sept. 28, opinion because FHFA is advancing “a misguided attempt to rehash old arguments and relitigate issues that th[e] Court has completely and correctly decided.”  Importantly, the shareholder-plaintiffs tell Judge Lamberth, FHFA hasn’t brought anything new before the court; FHFA repeats what it’s already argued without success.  The shareholder-plaintiffs urge Judge Lamberth to reject FHFA’s ” last-ditch attempt to relitigate a theory that this Court already considered and rejected.”

Globest: The Market Waits For The GSEs’ Caps This Week

Monday November 5 2018

New filing in Fisher vs. U.S., click here to view.

Peter Chapman writes, “The Fisher and Reid Plaintiffs filed their supplemental brief opposing the government’s omnibus motion to dismiss. These shareholder-plaintiffs urge Chief Judge Swweney to preserve their derivative claims for takings without just compensation, illegal exaction, and breach of fiduciary duty.”

New filing in Washington Federal vs. U.S.

Peter Chapman writes, “Washington Federal filed its supplemental brief opposing the government’s omnibus motion to dismiss under seal becase it contains references to non-public discovery material.  We should see a redacted copy for public consumption in a couple of days or weeks.”

New filing in Owl Creek vs. United States

Peter Chapman writes, “Owl Creek filed its supplemental brief opposing the government’s omnibus motion to dismiss under seal because it contains references to non-public discovery material.  We should see a redacted copy for public consumption in a couple of days or weeks. ”

New filing in Rafter vs. U.S., click here to view.

Peter Chapman writes, “The Rafter Plaintiffs filed their supplemental brief opposing the government’s omnibus motion to dismiss. “The Government cannot hide behind the Third Amendment to the PSPAs to evade the law,” the Rafter Plaintiffs tell Chief Judge Swweney, urging her to allow their contract claims to move forward.

New filing in Fairholme vs. U.S., click here to view.

Peter Chapman writes, “Fairholme filed its supplemental brief opposing the government’s omnibus motion to dismiss. Fairholme — indicating that Owl Creek, Appaloosa, Akanthos, CSS, and Mason Capital will have more to say about this — urge Judge Sweeney to The Cacciapalle Plaintiffs urge Chief Judge Sweeney to reject dismissing their implied-in-fact contract claims.”

New filing in Cacciapalle vs U.S., click here to view.

Peter Chapman writes, “The Cacciapalle Plaintiffs filed their supplemental brief opposing the government’s omnibus motion to dismiss. The Cacciapalle Plaintiffs urge Chief Judge Sweeney to permit them to pursue their derivative claims, breach of contract claims, and claims arising from the breach of the implied covenant of good faith and fair dealing.”

New filing in Arrowood vs. U.S., click here to view.

Peter Chapman writes, “Arrowood filed its supplemental brief opposing the government’s omnibus motion to dismiss, and a copy of that filing is attached to this e-mail message.  Arrowood urges Chief Judge Sweeney to defer consideration of arguments about whether pre-Sweep and post-Sweep shareholders should be treated differently.”

New filing in Fairholme vs. U.S., click here to view.

Peter Chapman writes, “Fairholme the Cacciapalle Plaintiffs, Messrs. Fisher and Reid, Arrowood, and the Rafter Plaintiffs delivered their joint omnibus response to the government’s omnibus motion to dismiss.  It goes without saying the litigating shareholders oppose the government’s request.  “This case concerns one of the largest Government appropriations of private property in the history of this Nation, more befitting of ‘a banana republic’ than ‘a constitutional one,” Fairholme and its allies tell Chief Judge Sweeney.   Fairholme tells Chief Judge Sweeney the government said the conservatorship would be temporary, and the purpose of the warrants was to was to preserve, rather than wipe out, shareholder value in the event of a recovery.  Instead, the government got greedy.  And these lawsuits seek to right that wrong.  Fairholme tells Chief Judge Sweeney she should deny the government’s motion to dismiss.”

New filing in Angel vs. Fannie Mae, click here to view.

Peter Chapman writes, “Mr. Angel filed a response this afternoon to FHFA’s objection to his request to file a sur-reply.”

Market Watch: Fannie Mae to pay $4 billion dividend to Treasury

Mortgage News Daily: Fannie/Freddie Post Healthy Profits, Resume Full Dividend Payments

Scotsman Guide: GSEs record solid third-quarter earnings

Friday November 2 2018

New filing in Bhatti vs. U.S., click here to view.

Peter Chapman writes, “Treasury and FHFA sought and obtained an eight-day extention to file their responsive briefs in the Eighth Circuit. Treasury and FHFA’s briefs are now due Nov. 12, 2018.”

New filing in Fairholme vs. U.S., click here to view.

Peter Chapman writes, “Chief Judge Sweeney blessed Fairholme’s proposal to streamline briefing in opposition to the government’s omnibus motion to dismiss.  Fairholme, the Rafter Plaintiffs, the Cacciapalle Plaintiffs, Messrs. Fisher and Reid, and Arrowood will file one 75-page brief tomorrow addressing matters of concern to the group and each shareholder-plaintiff will file separate 15-page briefs addressing their individual concerns.”

American Banker: How Freddie Mac’s preparing for day it might enter private sector

Guru Focus: Bruce Berkowitz Comments on Fannie Mae and Freddie Mac

Markets Insider: Fannie Mae Reports Net Income of $4.0 Billion and Comprehensive Income of $4.0 Billion for Third Quarter 2018

Seeking Alpha: More on Fannie Mae Q3: Sees $4.0B dividend to Treasury

Bill Maloni’s GSE Blog: Our Opportunity is Here..

Thursday November 1 2018

New filing in Cacciapalle vs. U.S., click here to view.

Peter Chapman writes, “The Caccipalle Plaintiffs delivered their request to Chief Judge Sweeney’s this afternoon seeking her permission to file one oversized coordinated brief together with the Rafter Plaintiffs, Fairholme, Arrowood, and Messrs. Fisher and Reid, and one 15-page brief to address any matter peculiar to them.”

New filing in Arrowood vs. U.S., click here to view.

Peter Chapman writes, “Arrowood delivered its request to Chief Judge Sweeney’s this afternoon seeking permission to file one oversized coordinated brief together with the Rafter Plaintiffs, Fairholme, the Cacciapalle Plaintiffs, and Messrs. Fisher and Reid, and one 15-page brief to address its particular issues.”

Update in Fairholme vs. U.S., click here to view.

Peter Chapman writes, “Three additional lawyers from Dentons, representing Arrowood, requested access to non-public discovery materials earlier this month.” Above is an updated chart reflecting who has access to those materials.

New filing in Fairholme vs. U.S., click here to view.

Peter Chapman writes, “Fairholme wants Chief Judge Sweeney’s permission to file one oversized coordinated brief with the Rafter Plaintiffs, the Cacciapalle Plaintiffs, Messrs. Fisher and Reid, and Arrowood one 15-page brief to address its parochial interests.”

New filing in Washington Federal vs. U.S., click here to view.

Peter Chapman writes, “Chief Judge Sweeney entered an order this afternoon giving Washington Federal peomission to file an oversized brief. The balance of her order cleans up the court document as the result of a document filing mishap earlier this week.”

New filing in Owl Creek vs. U.S., click here to view.

Peter Chapman writes, “Chief Judge Sweeney entered orders this afternoon granting Owl Creek, Appaloosa, Akanthos, CSS and Mason Capital’s request to file a joint 60-page responst to the government’s omnibus motion to dismiss.”

New filing in Rafter vs. U.S., click here to view.

Peter Chapman writes, “Chief Judge Sweeney entered an order this afternoon granting the Rafter Plaintiffs’ permission to file an oversized brief and tells other plaintiffs to file their own requests to deviate from the court’s rules.”

New filing in Fisher vs. U.S., click here to view.

Peter Chapman writes, “Messrs. Fisher and Reid  delivered their request to Chief Judge Sweeney’s yesterday seeking her permission to file one oversized coordinated brief together with the Rafter Plaintiffs, Fairholme, Arrowood, and the Caccapalle Plaintiffs, and one 15-page brief to address their derivative claims. ”

Bloomberg: Will a Democratic House Hurt Wall Street?

Housing Wire: Freddie Mac CEO: I’ve done what I came here to do

DS News: Ten Years of Transformation