Pershing Square Sues U.S. Over Fannie Mae and Freddie Mac
Wall Street Journal - August 15, 2014 - August 15, 2014
Wall Street Journal, By Joe Light and Nick Timiraos
William Ackman’s Pershing Square Capital Management LP, which has taken sizable stakes in the common shares of Fannie Mae FNMA +3.64% and Freddie Mac, FMCC +3.93% filed a lawsuit Thursday against the U.S. government challenging its bailout terms for the mortgage-finance giants.
Pershing Square’s suit, filed Thursday in the U.S. Court of Federal Claims in Washington D.C., is the latest investor action challenging the government’s 2012 decision to force Fannie and Freddie to send nearly all of their profits to the U.S. Treasury as dividends. The New York hedge fund is joined in the suit by three individuals who are longtime investors of Fannie Mae common shares.
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