- Advertisement -
- Advertisement -

Related

Court Overrules Hedge Fund Plaintiffs in Fannie, Freddie Case

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – Fannie Mae and Freddie Mac shares plunged over 30% after a decision was handed down this past Tuesday by a U.S. federal appeals court that hedge funds still won’t be able to sue the U.S. government for seizing their profits following Fannie and Freddie’s post-2008 bailout.

Fannie Mae shares were down 34.7% while Freddie Mac shares slid 38.1%.

The government had been accused by shareholders of illegally seizing profits following a ruling in 2012 allowing it to collect a share of earnings each quarter. Both Fannie Mae and Freddie Mac have been under the guardianship of the Federal Housing Finance Agency since 2008.

“We’ve got to get them out of government control,” Treasury Secretary Steve Mnuchin said last month, while Gary Cohn, director of the White House National Economic Council has said that U.S. president Donald Trump’s administration plans to review the status of Fannie and Freddie. Mr Mnuchin, however, has said he doesn’t support a plan to recapitalize the entities and then sells stakes in them, a plan known as “recap and release.”

The court did say that some issues brought by the hedge funds could be adjudicated in lower courts, with the possibility that plaintiffs could demand a wider review or take their case to the Supreme Court. Other contract-based claims related to liquidation preferences and dividend rights have already been returned to the district court for on-going proceedings.

 

 

 Picture: (c) Ralf-Kleemann—shutterstock

 

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

Latest Articles

Mapping the Finnish Hedge Fund Landscape

Beyond operating as a media platform, HedgeNordic maintains an extensive database of Nordic hedge funds and related data. Although the data is not without...

Quirky Questions for Serge Houles (Tidan Capital)

Not every conversation in the hedge fund world needs to revolve around alpha, Sharpe ratios, or fund flows. In the ongoing Quirky Questions series,...

Quirky Questions for Mette Østerbye Vejen (Caba Capital)

Not every conversation in the hedge fund world needs to revolve around alpha, Sharpe ratios, or fund flows. In the ongoing Quirky Questions series,...

Solid First-Half Finish for Nordic Hedge Funds

Nordic hedge funds wrapped up the first half of the year on a solid note, delivering an average gain of 1.4 percent in June....

Brevan Howard Winds Down Volatility Fund Managed by Ville Helske

Brevan Howard Asset Management is winding down a volatility-focused hedge fund run by high-profile Finnish portfolio manager Ville Helske. Helske, formerly Head of Allocation...

Ymer to Launch Fourth CLO Fund with Proven Strategy and Structure

Building on the track record of three previous credit funds, Swedish alternative credit specialist Ymer SC AB is preparing to roll out its fourth...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.