On Tuesday, a federal judge dismissed a lawsuit from a group of Wall Street investors claiming that the government’s decision to “sweep” the profits of Fannie Mae and Freddie Mac violated the rights of the companies’ shareholders. As a result, all quarterly profits at Fannie and Freddie will continue to flow directly to the U.S. Treasury for the foreseeable future, pending further legal action.
That’s good news for taxpayers, who have invested $187.5 billion in the mortgage companies since they were placed under government conservatorship in 2008.
via The Other Fannie and Freddie Lawsuit – Bank Think Article – American Banker.
