GSE Shareholders Persist After Judge Dismisses ‘Sweep’ Lawsuit
October 3, 2014
Attorneys for disenfranchised GSE shareholders have already filed a notice to appeal this week’s surprise dismissal by a Washington, DC, federal judge of the lawsuits challenging the Treasury Department’s 2012 “net-worth sweep” of nearly all profits generated by Fannie Mae and Freddie Mac. However, a legal expert notes that the ruling by Judge Royce Lamberth of the U.S. District Court for the District of Columbia makes a tall order even taller for investors taking on the government.
Some SWFs in other countries have extensive ownership interests in major corporations and sweep much of their profits into state coffers.
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