Fight over Fannie and Freddie’s profits intensifies
- April 10, 2014
April 9, 2014
By Gina Chon
The debate over the future of Fannie Mae and Freddie Mac is creating strange bedfellows, with consumer advocate Ralph Nader teaming up with a wealth manager to oppose the US government’s move to take all of the profits of the mortgage finance companies.
Mr Nader, CapWealth Advisor chief executive Tim Pagliara and other shareholders of Fannie and Freddie on Wednesday called on Congress to protect their rights to the profits as lawmakers consider bills aimed at winding down the companies. Some of the investors were in Washington DC to meet lawmakers to press their case.
Fannie and Freddie have been overseen by the US government after they received a $188bn rescue during the 2008 financial crisis. In recent years, they have been generating billions of dollars in revenue for the US Treasury after the bailout terms were revised in 2012 so that all of their profits go to the government.
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