Ron Begala Swanson
Jul 28, 2015 · 4 min read

Treasury + FHFA Lying in DC District Court = Reversible Error (Or Tell Me Lies, Tell Me Sweet Little Lies)

  1. Mr. Mario Ugoletti was the Interim Ombudsman for FHFA and worked at Treasury for 14 years prior to his current exhilirating post.

3. Mario swore to the Court that 1) FHFA/Treasury and the GSEs “had not yet begun to discuss whether or when the Enterprises would be able to recognize any value to their deferred tax assets” & 2) that FHFA/Treasury hadn’t envisioned that Fannie Mae’s deferred tax asset would reverse in early 2013.

(Please note, the DTA reversal in early ‘13 resulted in a FIFTY NINE BILLION DOLLAR….$59 Billion…$59 Billion…$59 Billion…payday for Treasury in Q1 of ’13 alone. Wow, what amazing luck Treasury has! What’re the odds that the very fu*&ing second Treasury started sweeping all of GSEs profits that the DTA would reverse resulting in a massive windfall for Treasury? Especially considering the fact that Mario swore they never, ever, ever considered the fact that the DTA would promptly reverse?!?)

4. Here’s exactly what Mario swore in the DC District Court:

That says perjury right there. PERJURY.

5. Thanks to discovery in Fairholme in the Court of Federal Claims, we now know that Mario’s sworn statement above is an absolute, utter, bald-faced lie.

6. Here’s an excerpt from redacted Deloitte documents. Notice the use of the word “implausible.” I’m going to go out on a limb and say that Charles Cooper can read a memo.

7. Here’s an excerpt from redacted Fannie Mae documents.

8. Here’s an excerpt from redacted Treasury/FHFA documents.

9. Oh, and as a quick aside, Deferred Tax Assets are discussed every quarter as part of the 10Q prep checklist, so the assertion that Treasury hadn’t thought about the DTA pre-sweep is asinine on its face…and in case someone suggests FHFA/Treasury weren’t a part of these quarterly discussions, here’s an excerpt from FHFA OIG Report EVL 2012–006.

10. OK, so what’s the big deal, the government lied in the DC Court? As one reporter for a paper owned by Rupert Murdoch pointed out to me (conversation modified by me): “Ron, don’t confuse the government looking bad with the decision.” To which I would have humbly replied could I have merely summoned the courage: “THIS IS REVERSIBLE ERROR, NOT SOMETHING COSMETIC.”

11. In a nutshell, the above shows that Lamberth said: “Screw the administrative record. I like the cut of this Ugoletti guy’s jib; I’ll let his sworn statement serve as a substitute for the administrative record.” (Note: not verbatim). Only problem is, much to Lamberth’s chagrin, discovery in Fairholme shows the Ugoletti was lying, lying real bad. And all of that amounts to:

12. Oh, and to the folks who think some of us who kind of dig the rule of law and respect the integrity of our capital markets are a bit too “conspiratorial” in our views of this GSE situation, I’d like to end with some nuggets from the Starr/AIG trial which we were only able to obtain thanks to a former billionaire who fought and continues to fight the government in court…

Here’s the General Counsel of FRBNY lying at trial (forget about those minority shareholders):

Here’s SIGTARP report saying that regardless of what gov tried to sell to the public, the AIG bailout served as a backdoor bailout for TBTF banks:

In closing, first, a shoutout to Ben Franklin

Second, a shoutout to Fleetwood Mac

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