Endi Plaza bankruptcy dismissed, foreclosure case proceeds

But don’t worry about Incline Village. That’s totally cool. No need for anybody to do any due diligence on the developer. He’s not sketchy! It’s fine. I mean…the bakery is going in there and the mayor likes it so it must be okay.

One factor that needs to be considered in this recent maneuver is the current state of the Federal government. William Pulte, a wealthy private equity executive, is now head of the Federal Housing Finance Agency. He just fired 14 out of 25 of the corporate board members for Fannie Mae and Freddie Mac, put his own people into those slots and named himself Chair of both boards. The government regulator is now Board Chair. Fannie Mae’s entire audit committee was fired and the organization is being hollowed-out at this very moment. Ostreicher may have decided he didn’t need the protection of bankruptcy anymore because Fannie Mae is no longer capable of a protracted fight. The government sponsored enterprise may have indicated its intent to move forward with foreclosure proceedings, but can it really do that under current management? Ostreicher may be betting it can’t. He may be thinking he can leverage a good deal, maybe even a get-out-of-jail-free card.