Fannie, Freddie Investors Target US In $41B Bailout Suit

Law360, New York (June 10, 2013, 10:48 PM EDT) -- The shareholders of Fannie Mae and Freddie Mac on Monday hit the government with a $41 billion suit claiming that even though the U.S. Treasury Department’s bailout of the mortgage giants during the financial crisis helped the nation’s economy, it hurt shareholders and violated the U.S. Constitution.

In a complaint filed in the U.S. Court of Federal Claims, the shareholders claimed Congress and the Federal Housing Finance Agency were the ones that had encouraged the mortgage giants to purchase subprime mortgage securities, even though they had...
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