Fannie Mae and Freddie Mac shareholders may finally get some modest compensation for FHFA’s decision to allow Treasury to seize all of the profits of the government-sponsored enterprises.
Despite winning a massive jury award in August, GSE shareholders are still squabbling with the government over how those damages should be distributed.
A jury in the U.S. District Court for the District of Columbia this week handed GSE shareholders their first major win in their effort to recover some of their investment in Freddie and Fannie stocks.
After a hung jury, shareholders will head back to court for a second chance at proving FHFA was in breach of contract when it agreed to the net worth sweep with Treasury.
In what is likely to be the last legal wranglings in Fairholme v. FHFA before its long-awaited jury trial begins, Judge Lamberth dealt Fannie/Freddie shareholders a modest defeat.