The future of Fannie and Freddie

By Logan Beirne

Last month, a judge exposed a new tear in the federal government’s shroud of secrecy in its battle for Fannie Mae and Freddie Mac. On July 21, Judge Margaret Sweeney of the United States Court of Federal Claims for the D.C. Circuit granted the hedge fund Fairholme’s motion to use in its court battle “protected information,” which the government had fought to keep secret. This development may very well indicate that Judge Sweeney believes the Feds are talking from both sides of their mouths in the multiple investor suits over their handling of the mortgage giants.

The federal government has gone to extraordinary lengths to keep secret the discussions surrounding its seizing control of the private companies in 2008 and subsequent expropriation of all their profits in 2012. Its efforts may be unravelling.

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