Fannie, Freddie Investors Sue Over Stock Losses

Law360, New York (July 29, 2013, 7:04 PM EDT) -- A proposed class of investors targeted Fannie Mae, Freddie Mac and the companies' government conservator in Washington federal court Monday, alleging they broke shareholder contracts by funneling profits to the government that should have been distributed to investors.

The private investors, junior stockholders behind the U.S. Department of the Treasury's senior stock position, contend that the Treasury and the Federal Housing Finance Agency wrongfully amended the Treasury's preferred stock agreement so that the junior stockholders' rights to dividends were wiped out, which allegedly sent stock value...
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