Recent Updates from the Investors Unite Blog
AIG Lawsuit May Hinge on Rule of Law in Allegation of Illegal Takings from Shareholders
Thursday, August 28th, 2014
August 28, 2014
A lawsuit against the federal government filed by the former head of AIG is going to trial on Sept. 29, and we’re going to be watching it with great interest.
Maurice “Hank” Greenburg was the largest stakeholder in AIG (12 percent) when the government stepped in to rescue it on Sept. 16, 2008. What happened next sounds awfully familiar: the government took nearly an 80 percent stake in the company and then did a reverse stock split that wound up, in the words of a Reuters article, “diluting the existing shareholders.”
Mr. Greenberg’s lawsuit is based on proving that the bailout was an illegal taking under the 5th Amendment. Sound familiar? In issuing his ruling, the judge didn’t say that he agreed with Greenberg’s position – just that he thinks there’s enough legal reasoning for the case to go forward. More from Reuters:
Judge Thomas Wheeler of the U.S. Court of Federal Claims said the case brought by Greenberg’s Starr International Co on behalf of itself and other AIG shareholders involves “complex financial and economic issues” that deserve analysis and testimony from qualified expert witnesses.
“The complexity of the submissions and the factual disagreements strongly point to the need for a trial,” Wheeler wrote in an order dated Monday.
If Mr. Greenberg’s case is successful, it will send a powerful and clear message to the federal government that while the rule of law may be suspended in extraordinary circumstances, the Constitution must always be re-applied as soon as possible. In the case of the illegal takings of dividends that rightfully belong to Fannie Mae and Freddie Mac, that means ending the conservatorship and restoring what it legally and contractually owed. We will keep an interested eye on the Greenberg lawsuit as it moves through trial.
Read more Investors Unite blogs here
How Richard Shelby Would Guide Senate Banking Panel (Again)
American Banker - August 26, 2014
Red Herring or Clue? Fannie Job Posting Hints at NYSE Listing
Fox News - August 27, 2014
FHFA Report a Waste of Taxpayer Time and Money
Huffington Post - August 27, 2014
Fannie Mae to Sell Headquarters
Wall Street Journal - August 28, 2014
GS/BAC settlements further vindicate Fannie and Freddie
Value Walk - August 26, 2014
Fannie Mae Seeks Advice Regarding NYSE Listing Requirements
Value Walk - August 27, 2014
U.S. loses bid to dismiss ex-AIG CEO’s $25 billion lawsuit over bailout
Reuters - August 27, 2014
Many Homeowners Still Qualify For Mortgage Relief
NPR - August 26, 2014
Carney introduces bill to preserve 30-year mortgage
Cape Gazette - August 26, 2014
Fannie Mae: Joint Status Report (Fairholme Lawsuit)
Value Walk - August 25, 2014
Real Reform for Fannie & Freddie
Current legislation needs to be amended in order for all investors – pensioners, community banks and individuals – to be repaid and create a solid platform for the mortgage market to thrive.
- Repayment of Pensioners, Community Banks and Individuals invested in Fannie and Freddie.
- Stricter lending standards and oversight of Fannie and Freddie.
- Affordable housing goals reinstated and upheld under stricter oversight.
Click here for more information
Investors Unite works to educate Fannie Mae and Freddie Mac shareholders and lawmakers of the importance of reforming the GSEs in a way that will reimburse shareholders what they are contractually and legally owed, but have not been paid.
The United States Congress is considering Government Sponsored Enterprise (GSE) reform that would wipe out Fannie Mae and Freddie Mac shareholders for good. These shareholders include everyday Americans such as public service retirees, teachers, firefighters and police officers. These individuals and pension funds invested in the GSEs before, during, and after the conservatorship and should be made whole under any reform. Taxpayers have been repaid with interest for their 2008 bailout of the GSEs.
Our country’s respect for the rule of law demands that private property rights be protected and Investors Unite gives Fannie Mae and Freddie Mac shareholders a voice in that fight.