Fri, Aug 29, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund Perry Capital sues Feds over Fannie Mae bailout

Monday, July 08, 2013

Precy Dumlao, Opalesque Asia:

A group of investors led by hedge fund Perry Capital sued the Federal government for allegedly seizing all profits from the bailed-out mortgage finance companies and Fannie Mae and Freddie Mac saying the move destroyed investors’ holdings, various media reported.

According to The Journal, the lawsuit was filed Sunday in Washington in which Perry Capital accused the Treasury Department and Federal Housing Finance Agency of violating the terms of the 2008 bailout agreement with the failed mortgage companies after it decided in August last year to capture all profits.

Perry Capital, which started its position in Fannie Mae and Freddie Mac in 2010, wants the Federal government to recall the decision. It said that the bailout agreement did not provide specific mechanism for the two firms to repay the $187.5bn in bailout fund the government extended in 2008 to rescue the then ailing firms.

The report added that another group of investors have filed a much larger lawsuit against the government’s 2008 seizure of the two firms.

The recovering housing market in the U.S. resuscitated Freddie Mac’s and Fannie Mae’s fortunes that investors have been piling up to retain their investments.

As the two firms returned to making money, they had already paid $132bn in dividends as at end June this year, reported ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  4. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  5. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest