FHFA and Treasury delivered their briefs to the Sixth Circuit yesterday, and copies are attached to this e-mail message. Needless to say, the government thinks the Rop Plaintiffs’ arguments lack merit and should not be entertained. Among other things, FHFA suggests the increase in Treasury’s liquidation preference from $199 billion to $260 billion following the Jan. 14, 2021, letter agreements shows the Trump Administration had no intention of relinquishing its senior preferred position in the GSEs’ capital structures. The Justice Dept. says if President Trump wanted Treasury to make changes to the PSPAs, he could have and should have directed Secy. Mnuchin to do that.
