Pershing’s Second GSE Lawsuit Seeks ‘Net Worth Sweep’ Injunction
Inside Mortgage Finance - August 19, 2014 - August 20, 2014
Inside Mortgage Finance, Charles Wisniowski
The New York-based hedge fund Pershing Square Capital Management has filed a second lawsuit against the federal government demanding it cease and desist its “net worth sweep” of Fannie Mae and Freddie Mac profits.
Pershing’s second suit, filed in U.S. District Court in Washington, names the Federal Housing Finance Agency and the Treasury Department as defendants.
Pershing, reportedly the largest investor in GSE common shares, is seeking an injunction to halt the sweeps, a declaratory judgment that the revised bailout terms and sweeps are illegal, an unwinding of the sweeps, as well as “other equitable and ancillary relief.”
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