Fannie and Freddie Shareholders Sue FHFA and Treasury Department Over Payment of Profits to U.S. Government
JD Supra - June 3, 2015 - June 4, 2015
By Stephen Knaster, Suzette Pringle, and M. Todd Scott
On May 28, 2015, three Fannie Mae and Freddie Mac (the “Companies”) shareholders filed a complaint in the United States District Court for the Northern District of Iowa against the Federal Housing Finance Agency (“FHFA”), its director, and the U.S. Treasury Department in connection with FHFA’s agreement to pay all of the Companies’ profits to the Treasury on a quarterly basis (the “Net Worth Sweep”). According to plaintiffs, the Net Worth Sweep would be all encompassing depriving the private shareholders of their profits forever.