Fannie Mae (FNMA) and Freddie Mac (FMCC): Perry Capital v. Lew Minor Update
Edit on 6/23: Court entered an order accepting the request for 5 additional days and accepted the schedule below. Here is the filing.
Small update in the Perry Capital, LLC v Jacob J. Lew Case in the United States Court of Appeals for the District of Columbia Circuit for Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA), and Federal Home Loan Mortgage Corp (OTCMKTS:FMCC). The Treasury has asked for a 5 day delay in the schedule.
The document was filed today on June 22nd, 2016 and is available here. The government notes that “Counsel for Treasury has consulted with counsel for class plaintiffs and counsel for FHFA. Neither opposes this motion.”
The new schedule if accepted by the Judges would be as follows:
- Brief for Class Plaintiffs: July 6, 2016
- Joint Brief for FHFA, et al.: July 13, 2016
- Brief for Treasury: July 13th, 2016
- Reply Brief for Class Plaintiffs: July 20, 2016
The revised timeline applies to questions asked of the class plaintiffs and government made public yesterday. In terms of the overall timeline, yesterday it was noted by Peter Chapman that he’s never seen a circuit court case carry from over one term, which would end on August 31st.
The questions themselves have set off speculation as to how the Judges are leaning.
John Carney of the WSJ, whom is known for his Pro Government twist, believes this hints the court is not likely to grant injunctive relief. However, even he doubles back and notes that “one possibility is that the court is more open to the idea that the government could be liable for monetary damages while enjoying immunity to injunctive relief.”
My more optimistic wild guess
The Federal Tort Claims Act seems to specifically set limits as to the kinds of damages that the government can be liable for specifically baring punitive damages or interest. A more optimistic interpretation would be the Judges are focused on that aspect because they are trying to determine what sort of damages and relief they can grant. The subject matter jurisdiction aspects would be the court insuring that it has the authority to do so. This comes with the disclaimer I am not a lawyer and reading the tea leaves on judges can be very difficult.
Disclaimer: Author has positions in Fannie Mae Preferred, and Freddie Mac Junior Preferred.
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