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U.S. sued by Ackman over Fannie and Freddie

Bill Ackman's Pershing Square has sued the U.S. government, claiming that its stripping of Fannie Mae's (OTCQB:FNMA) and Freddie Mac's (OTCQB:FMCC) profit illegally short changes investors in the mortgage companies' common stock.

Hedge funds have previously sued the government over the two, although most of those lawsuits focused on the companies' preferred stock.

Pershing is accusing the government's "brazen" practice since 2012 of funneling virtually all profit from Fannie and Freddie to the U.S. Treasury Department.

Previously: Ackman reportedly leading another suit over GSEs

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Comments (7)
  • GoGowadof100s
    , contributor
    Comments (127) | Send Message
    Love me some Ackman
    15 Aug 2014, 04:09 AM Reply Like
  • InTheTube
    , contributor
    Comments (152) | Send Message
    This is getting very, very interesting.
    15 Aug 2014, 04:51 AM Reply Like
  • danceprometheus
    , contributor
    Comments (26) | Send Message
    Not only is it illegal what they are doing, it is also not in the interest of the government's goals of mortgage liquidity, and a housing recovery. Unless the GSEs re-attract the public investors, the recovery will be solely based on the strength of the government, and not a genuine public interest and real recovery.
    15 Aug 2014, 07:06 AM Reply Like
  • Orthoeconomics
    , contributor
    Comments (123) | Send Message
    It is no surprise that the SEC is going after Ackman over the Allergan merger. First our servant politicians steal billions- then if you sue they will find something else to take you to court. I wish Bill well. I am happy to ride his coattails, but he is fighting a very corrupt system. Long the preferred's since $0.72.
    15 Aug 2014, 08:50 AM Reply Like
  • 4Duxs
    , contributor
    Comments (9) | Send Message
    This is a challenge and the new lawsuit gave us all an opportunity to take action. I hope all of you that own the stock take some sort of action to make it publicly known you are willing to stand up for your rights. contact your elected officials and join the lawsuit. For the current stockholders use your concern to make your individual difference.
    15 Aug 2014, 12:10 PM Reply Like
  • aawnc
    , contributor
    Comments (172) | Send Message
    If you folks haven't read the court filing you need to. It is a very detailed account of factual government self documentation of misdoings. I knew allot of it and forgot allot of it too because it goes all the way back to the beginning of the Conservatorship. If you haven't been following what the government has been doing this one document will catch you up. It is written pretty straight forward and is readable compared to most legal documents. It isn't just full of facts, it's like reading a Clancy novel.
    15 Aug 2014, 09:49 AM Reply Like
  • InTheTube
    , contributor
    Comments (152) | Send Message
    Or a John Grisham novel. Is Ackman there hero in this story?


    Can't wait for the Michael Lewis book about this one, by the way.
    15 Aug 2014, 10:04 AM Reply Like
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