Group protests changes to Fannie Mae, Freddie Mac

The Tennessean

April 9, 2014
By Jamie McGee

Franklin investment advisor Tim Pagliara led Fannie Mae and Freddie Mac investors in a protest today in Washington, D.C., against federal legislation they say will wipe out their holdings in the mortgage giants.

Organized by Investors Unite, a coalition founded by Pagliara, the purpose of the effort was to give faces to investors who would be affected, illustrating that they don’t just represent hedge funds, but also include individual investors.

At issue is a bipartisan bill proposed by Sens. Tim Johnson and Mike Crapo that would wind down the mortgage giants, replacing them with a government mortgage insurance system backed in part by private capital. Returns from Fannie Mae and Freddie Mac, placed under government conservatorship in 2008, have been going to the U.S. Treasury since 2012, and the proposed bill leaves in question how shareholders would fare if the companies are dismantled.

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