Judge Cites Unequivocal Language in Dismissing Fannie/Freddie Lawsuit

(RECAP: A lawsuit challenging the manner in which profits from Fannie Mae and Freddie Mac (the GSEs) have been allocated to the U.S. Treasury was dismissed on Tuesday by a U.S. District Court judge. The suit, brought by institutional investors, contested 2012 changes they maintained violated the original terms of the government’s 2008 bailout agreement and unlawfully impair shareholder value. In dismissing the suits, the court stated that Treasury and FHFA had been given the power by Congress under the Housing and Economic Recovery Act (HERA) to take the companies’ profit. He suggested investors take up their grievances with Congress.)