Gov't Sued Again Over Fannie, Freddie Takeover

Law360, New York (July 10, 2013, 4:32 PM EDT) -- Investment manager Fairholme Capital Management LLC and insurance holding company W.R. Berkley Corp. sued the federal government Tuesday, alleging it had unconstitutionally altered its bailout deal for Fannie Mae and Freddie Mac to keep the companies' profits for itself, the second such suit in less than a week.

According to the suit, filed in the Court of Federal Claims, the government’s August “Net Worth Sweep” had altered the terms of the Fannie and Freddie bailout deals to direct 100 percent of profits to the U.S. Department...
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