Investor Rights

  • The U.S. taxpayers have been repaid for bailing out Fannie Mae and Freddie Mac.
  • The government currently receives 1:1 repayment of its investment in Fannie and Freddie, 100 percent all profits from Fannie and Freddie, plus a 10 percent dividend and 80 percent of the distributions of its common stock. (“Analysis of the 2012 Amendments to the Senior Preferred Stock Purchase Agreements,” Federal Housing Finance Agency Office of Inspector General. 5/20/13)
  • There are a diverse group of investors that invested in Fannie Mae and Freddie Mac before, during, and after the collapse and deserve to have their investments treated equitably. This includes but is not limited to vocal private investors such as Ralph Nader, state and local community banks, state-based pension funds, and local insurance companies.
  • The confiscation of money owed to investors by the U.S. Treasury is tantamount to an illegal taking and sets a dangerous precedent for illegal government action against all investors in the United States.
  • If Fannie and Freddie were to undergo a managed bankruptcy throughout liquidation, all investors including retirees, pension funds, community banks and others would be repaid.
  • All Congressional proposals (the Hensarling PATH Act, Corker-Warner and Johnson-Crapo in the Senate) fail to address what happens to the private investors in Fannie and Freddie, including the community banks and insurance companies that were encouraged by their regulators to bolster the GSEs’ capital.