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

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.