Friday, 31 July 2015
Last updated 10 hours ago
May 9 2014 | 11:33am ET
A group of hedge fund managers’ faith in Fannie Mae and Freddie Mac may be rewarded, as talks on a bipartisan plan to wind the mortgage giants down have fallen apart.
A committee vote on the bill to scrap the companies and replace them with a new system of government-backed mortgage insurers was postponed last week as Sens. Tim Johnson (D-S.D.) and Mike Crapo (R-Idaho) sought to build more support for the measure. The bill is expected to pass the committee, but without a large majority on the panel, it appears unlikely that the bill would come to a vote of the full Senate.
Six Democrats on the Senate Banking Committee have yet to commit to supporting the bill.
Both parties in Congress and the White House have expressed support for replacing, rather than restructuring, Fannie and Freddie. A number of hedge funds have invested in the companies and pushed to preserve them, including Perhsing Square Capital Management and Fairholme Capital Management.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…