Coalition Aims To Protect Fannie, Freddie Shareholders

Apr 9 2014 | 9:47am ET

The newly formed Coalition for Mortgage Security is sticking up for the rights of Fannie Mae and Freddie Mac shareholders.

The group, which describes itself as bipartisan and grass roots, echoes the arguments of hedge funds like Fairholme Capital Management and Perry Capital which have launched lawsuits over the value of their shares in Fannie and Freddie's preferred stock. 

The Coalition, which has tapped former senior U.S. housing official Ken Blackwell as director, declined to comment on its financial backers, reports Reuters.

At issue is the Treasury's move earlier this year to amend the terms of the lenders' $187.5 billion bailout. Prior to the so-called third amendment, the government was paid a fixed 10% dividend on its stake in Fannie and Freddie. Under the new terms, the Treasury gets all of the companies' quarterly profits until the bailout is paid out.

As the Senate Banking Committee prepares to consider a proposal to overhaul the housing finance market, the Coalition says it is "committed to reforming our housing finance system in a way that benefits and fairly treats current and future homeowners, taxpayers, and investors across the country."


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note