ugolettis testimony calls into query

Summary
According to legal filings, "Mr. Ugoletti's testimony phone calls into query evidence submitted by
FHFA in the district courtroom," and we now know what Ugoletti was conversing about for the
duration of his deposition.
Legally FHFA (Federal Housing Finance Company) is an unbiased federal agency.
Ugoletti worked as an formal for Treasury to produce the PSPA and he worked as an formal for
FHFA to amend the PSPA.
Fannie and Freddie could be worthless, value upwards of $twenty, or well worth up to $a
hundred if the warrants are cancelled and earnings accrue to the enterprises.
Plaintiffs file looking for Deloitte and PricewaterhouseCoopers files 3 times following
Housingwire stories forensic accounting fraud is fairly damning for the Treasury Division by
disclosing harmful FHFA phantom accounting gimmicks.
Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) are at present running in the
context of conservatorship the place every single dollar they make goes to US Treasury's General
Income Fund and as these kinds of these securities are speculative in character. In reality, if this
proceeds in perpetuity, the shares are worthless. In the meantime, Fannie and Freddie carry on to
help the housing financing market place in America.

D.C. Circuit Court docket Case Submitting Now In Concern

On September 30th, 2014 Decide Royce C. Lamberth granted the defendants' movement to
dismiss multiple lawsuits that assert the third modification internet worth sweep is illegal.
Integrated in the defendants' filings was a prepared testimony by Mario Ugoletti signed beneath
the penalty of perjury on December 17, 2013:
(click on to enlarge)
The plaintiffs have appealed this ruling and we count on a ruling someday in This fall of this year.

Courtroom Of Promises Filing Calls Into Concern Evidence

Submitted By FHFA In The District Court
Plaintiffs have submitted to get rid of the &quotprotected information&quot designations from the
depositions of Edward Demarco and Mario Ugoletti. Correct now, these depositions are not able
to be utilized in the D.C. Circuit but the thought is that they can be if this motion is granted:
(click to enlarge)

Analysis of Ugoletti Deposition As It Applies To Claims Created

in DC Circuit Courtroom
From the submitting we can discern that Ugoletti worked on behalf of Treasury to draft and FHFA
to amend the PSPA and DeMarco spoke to the government's extended-phrase plans for the
conservatorship. Ugoletti worked on the PSPA as a Treasury formal and as a FHFA formal:
Mr. Ugoletti was a Treasury official at the time that Fannie and Freddie had been placed into
conservatorship and was a FHFA official at the time of the Web Worth Sweep he worked on
issues related to the Favored Inventory Obtain Agreements (&quotPSPAs&quot) in the two
positions.
We now know what Ugoletti talked about during his deposition:

(click on to enlarge)

This Info Is Beneficial And Ought to Not Be Protected

(click to enlarge)
The argument is made to make these depositions available for use in the D.C. Circuit courtroom
simply because the deposition does not contain &quotProtected Info.&quot
(click to enlarge)

The Kicker - What Seems to be a Redacted Declaration

Even though we can not see this section since it is redacted, it appears to be a declaration that
was not filed beneath seal and is not subject to a Protecting Order. We can presume that this is
from the deposition alone. What we do know is that not granting this purchase permits the
Authorities to offer different information to distinct courts and the principal specifics presented to
the D.C. Circuit suggest that Fannie and Freddie would not produce earnings exceeding
Treasury's ten% dividend.
It would look that behind this redaction is a declaration suggesting the reverse:
(click on to enlarge)
This ought to not be a shock, due to the fact this intent shows up in Federal government Memos
as early as December twelve, 2013:
(click on to enlarge)

Summary And Valuation

Lawfully FHFA is intended to be an independent federal agency. Ugoletti worked as an formal for
Treasury to develop the PSPA and he worked as an formal for FHFA to amend the PSPA. If his
deposition is created accessible and utilised to reverse the 3rd modification Fannie and Freddie
are value upwards of $twenty in the celebration that the warrants are dilutive to common
shareholders.
If Decide Sweeney does not grant the plaintiff's motion, the Appeals circumstance in DC Circuit
could still consequence in a acquire for the Plaintiffs albeit it would be good to have a deposition
that undermines their previously statements. For the most part this is a timing issue. The appeals
approach will likely arrive to a conclusion in This fall of this calendar year while a Statements
Court ruling by Decide Sweeney is not expected for at the very least a 12 months if not longer.
A Court of Statements victory for the Plaintiffs may possibly or may possibly not nullify the
warrants and it might or may not result in them currently being partially or entirely exercised as
element of a recapitalization strategy. In the function the warrants are completely cancelled the
inventory could be value as much as 5x as a lot as if they weren't cancelled.
A lot more not too long ago the accounting practices have been introduced into concern and may
accelerate shareholder returns if the financials are retroactively restated. It's no surprise that
latest legal filings are looking to remove the &quotProtected Info&quot Designation from Files
Produced by Deloitte, Fannie Mae, Freddie Mac, and PricewaterhouseCoopers very likely relating
to a new press for an accounting restatement. The filings are sealed with responses owing July
thirteen, 2015:
I are unable to uncover a good counterargument otherwise - Treasury can not use an argument to
its benefit on the front conclude and ignore its existence on the back again conclude. Inner
accounting files are the successful ace. I rest my scenario. We require these or Fannie Mae
shareholders will have a for a longer time race. Alternatively of this coming to a shut in the back
50 % of this 12 months it might have to go to trial in the Court docket of Claims, or worse

nevertheless, a Sweeney dismissal granted prior to the accounting documents are disclosed.
That's a couple of a long time lengthier and no person understands for confident they say. I
respectfully disagree, it's evening and working day.
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