Government’s Case on Sweep is on Shaky Ground and Beyond a Crumbling Wall of Secrecy

Government’s Case on Sweep is on Shaky Ground and Beyond a Crumbling Wall of Secrecy by Investors Unite

This has not been a good week for government lawyers charged with defending the 2012 Net Worth Sweep of the revenues of Fannie Mae and Freddie Mac – which means it has been a good week for shareholders.

Today, attorneys presented oral arguments in the appeal of U.S. District Judge Royce Lamberth’s September 2014 dismissal of investors’ claims that the Sweep violated the Housing and Economic Recovery Act. Lamberth threw out the suit on the grounds that HERA gave the government wide discretion in its role as conservator of Fannie and Freddie. What has become increasingly evident is the absurdity of thinking...