Feb
21
Hedge Funds Can’t Sue Over Investments in Fannie and Freddie
By-
Appeals court upholds bulk of ruling dismissing challenge
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Institutions might qualify for inclusion in contract claim
Hedge funds largely failed in their legal challenge to the U.S. government’s capture of billions of dollars in profits generated by Fannie Mae and Freddie Mac after their bailout, sending shares of the mortgage guarantors plunging.
Perry Capital LLC, the Fairholme Funds and other big investors lost a bid to overturn a judge’s ruling that said they can’t sue the government over the dividend change. The change known as the “net-worth sweep” forced the companies to send almost all their profits to the U.S. Treasury, leaving shareholders with nothing. The companies have been under government control since being bailed out during the 2008 financial crisis…
Hedge Funds Can’t Sue Over Investments in Fannie and Freddie
