- The "thin reed" upon which speculation of movement towards a settlement rests, writes John Carney, is a request by lawyers from the Office of White House Counsel for access to heavily redacted documents. While the government didn't explain the reasons for the motion, the involvement of this set of lawyers (instead of the DOJ attorneys working the case) has lead some to believe the Administration wants to settle.
- If the White House wanted to settle, says Carney, DOJ lawyers would almost certainly handle the negotiations, meaning no need to bring in another set of attorneys. Instead, continues Carney, it's standard procedure for White House lawyers to review information in litigation referencing the White House.
- Carney: "The government has scored victories at almost every turn in the Fannie-Freddie litigation, giving it little motivation to seek a truce now."
- Nevertheless, Fannie (OTCQB:FNMA +5.3%) and Freddie (OTCQB:FMCC +5.5%) continue to rally.