The United States Court of Appeals for the District of Columbia Circuit is quite the place to be nowadays, especially if you have problems with how the federal government functions. Fresh off handing down a significant ruling in the fight for the constitutionality of the Consumer Financial Protection Bureau, the District of Columbia Court of Appeals just dealt a huge body blow to the investors who claimed that the government’s decision to sweep all the profits from Freddie Mac and Fannie Mae into the government’s coffers was not only illegal, but unnecessary as well.
Court rejects hedge funds claims in Fannie, Freddie profit sweep
The issue at hand is the so-called “Third Amendment sweep,” in which the federal government modified its conservatorship agreement with Fannie and Freddie to direct all profits from the government-sponsored enterprises to the Department of the Treasury. The government claimed at the time that the previous version of the conservatorship agreement, which required Fannie and Freddie to send a quarterly dividend to the Treasury… Read more at HousingWire.com
An individual purchased a stock with an understanding that the rules affecting loss and profit won’t change without warning. The United States Court of Appeals, District of Columbia Circuit apparently believes otherwise. On the 21st of February, the court ruled 2 to 1 that investors in shares of secondary residential mortgage lenders Freddie Mac and Fannie Mae, as managed by the New York hedge fund, Perry Capital LLC has no right whatsoever to realize their accrued profits.
Ruling in Perry Capital Appeal Shackles Fannie Mae/Freddie Mac Shareholders
National Legal and Policy Center on many occasions has analyzed the Fannie Mae and Freddie Mac financial crisis and the various proposed remedies for it. The problem has its roots in the implicit, and misguided, idea that homeownership is a right and that housing policy must promote that right at whatever risk to the public. For decades, these publicly-traded companies, for better or worse, have played a central role in… Read more at National Legal and Policy Center
Does Trump have a Fannie Mae and Freddie Mac Conflict?
MSNBC’s Rachel Maddow explains how Trump might have a Fannie Mae and Freddie Mac conflict of interest. When she asks Kellyanne Conway whether Americans need to know more about… Watch here