Michael Stegman is a Stone Cold Liar (Right to Receive GSE Shares is Assignable)

  1. At the Annual Conference of the National Association of Affordable Housing Lenders, Michael Stegman said that a sale of Treasury’s investment in the GSEs CANNOT provide resources for affordable housing. That is a lie, a big, fat, lie.

Excerpt from his speech:

2. Section 2.1(C) of the warrant agreement states: “Whenever the Holder exercises this Warrant in whole or in part, it may assign its right to receive the Exercise Shares issuable upon such exercise to any other Person.(Emphasis mine)

3. Section 7 reads: “the Holder may assign its rights to receive shares upon exercise of this Warrant pursuant to Section 2.1.” (Emphasis mine)

4. Section C of the Leadership Conference on Civil and Human Rights Plan for the GSEs gets it absolutely right.

5. And a bit more from the Leadership Conference on Civil and Human Right’s Plan:

6. Stegman characterizes the Leadership Conference as part of an “increasingly noisy chorus,” which really isn’t a nice thing to say, especially considering the Leadership Conference’s call for a recap/release was published in June at the request of the NEC.

7. In a nutshell, Stegman is a liar, one with input from a lot of lawyers. Maybe Stegman’s role in the Net Worth Sweep has something to do with his staunch aversion to the truth? Does Mike have something (and by something I mean a lot) to hide? Well, do ya Mike?

Here is UST’s warrant agreement in its entirety: http://www.treasury.gov/press-center/press-releases/Documents/warrantfnm3.pdf