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Fannie Mae And Freddie Mac’s Shareholders Might Not See Any Profits After All

The Motley Fool, By Matthew Frankel

Over the past couple years, about 20 separate lawsuits have been filed with the goal of changing the profit-distribution arrangement of Fannie Mae (NASDAQOTCBB: FNMA  ) and Freddie Mac (NASDAQOTCBB: FMCC  ) . Specifically, both common and preferred shareholders are upset that the government decided to keep 100% of the agencies’ profits for itself.

Well, the hopes of shareholders just received a crushing blow as a U.S. District Court judge dismissed several of the lawsuits on Tuesday, causing shares to plummet by as much as 50% the next day. So what happens now? Is there still a chance that the remaining lawsuits will succeed, or should shareholders run for the exits?

Read full article: Fannie Mae And Freddie Mac’s Shareholders Might Not See Any Profits After All