Gov't Hit With Class Action Over Fannie, Freddie Takeover

Law360, Chicago (July 11, 2013, 5:14 PM EDT) -- The federal government on Wednesday was slapped with a third lawsuit in four days, this time a class action, alleging recent changes to its bailout deal with Fannie Mae and Freddie Mac unfairly sweep into the public coffers renewed profits that should go to the companies’ shareholders.

The government unilaterally altered the terms of the bailout agreement last August to require Fannie and Freddie to give the U.S. Treasury Department increased dividends representing the bulk of their profits, according to a complaint filed in Washington, D.C.,...
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