The worst financial crisis since the Great Depression

A decade ago, the United States was engulfed in perhaps the worst financial crisis since the Great Depression. Toxic mortgage debt had poisoned the global financial system. Yet the 5th Cir. denied all homeowners in favor of these rogue banks.




In this particular Opinion, it’s about the longest you’ll read and concerns investors that were upset with the bailout and how they were treated. They sued the government, in particular Mnuchin, now the Secretary of the US Treasury, but better known as the “foreclosure king” and the guy who bought IndyMac after it was put into receivership and then renamed it OneWest Bank, because he had to, not because he wanted to.

“A decade ago, the United States was engulfed in perhaps the worst financial crisis since the Great Depression. Toxic mortgage debt had poisoned the global financial system. Hoping to reverse a national housing-market meltdown, Congress passed the Housing and Economic Recovery Act of 2008 (“HERA”), Pub. L. No. 110-289, 122 Stat. 2654 (codified in various sections of 12 U.S.C.). Among other things, HERA created a new independent federal entity—the Federal Housing Finance Agency (“FHFA”)—to oversee two of the nation’s largest financial companies, government-chartered mainstays of the U.S. mortgage market: the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”).

Since their inception, these twin mortgage-finance giants have always been government-sponsored entities (“GSEs”). But Fannie and Freddie are also private corporations with private stockholders, and many investors are disenchanted with the Federal Government’s management. This case is the latest in a series of shareholder challenges to an agreement between the FHFA, as conservator to Fannie and Freddie, and the Treasury Department. Under the 2012 agreement, Treasury provided billions of taxpayer dollars in capital. In exchange, Fannie and Freddie were required to pay Treasury quarterly dividends equal to their entire net worth. This exchange is known as the “net worth sweep,” and aggrieved investors are unhappy with the bailout terms. 

“Because we find that the FHFA acted within its statutory authority by adopting the net worth sweep, we hold that the Shareholders’ APA claims are barred by § 4617(f). But we also find that the FHFA is unconstitutionally structured and violates the separation of powers. Accordingly, we AFFIRM in part and REVERSE in part.”

Panel consisted of: STEWART, Chief Judge, and HAYNES and WILLETT, Circuit Judges.

Investors (Collins et al) v US Treasury (Steve Mnuchin et al)

What’s interesting about this opinion is how it reads. It sounds like the Justices are letting congress and the government know, they’re the executioners throwing people out of their homes and doing so to stabilize the economy. Well that’s not justice and the confessions are taken as they sound, like a person that knows what they are doing is wrong, yet they refuse to correct it.

The Citizens’ of this State and country need honest leaders and justices, and until they correct the miscarriage of justice against the people, there will be no forgiveness for their slaughter.

Update November 2018

En banc approved for this Investor v US Govt (Munchin)

IT IS ORDERED that this cause shall be reheard by the court en banc with oral argument on a date hereafter to be fixed. The Clerk will specify a briefing schedule for the filing of supplemental briefs.

Read Order

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The worst financial crisis since the Great Depression
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Laws In Texas is a blog about the Financial Crisis and how the banks and government are colluding against the citizens and homeowners of the State of Texas and relying on a system of #FakeDocs and post-crisis legal precedents, specially created by the Court of Appeals for the Fifth Circuit to foreclose on homeowners around this great State. We are not lawyers. We do not offer legal advice. We are citizens of the State of Texas who have spent a decade in the court system in Texas and have been party to during this period to the good, the bad and the very ugly.

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