U.S. Government Loses Bid to Stay Fannie Mae Freddie Mac Lawsuit
A federal judge ruled against the feds in their bid to stay a lawsuit alleging the government altered the terms of a Fannie Mae/Freddie Mac bailout agreement in order to keep all the profits generated by the two government sponsored enterprises (GSE) to itself. The ruling paves the way for the suit to move forward.
Fannie Mae and Freddie Mac have often been confused as being government entities. Leading up to the credit crisis of 2008, many stock brokers sold Fannie Mae/Freddie Mac notes and preferred stock as being government guaranteed with the investment being as safe as treasury securities. Investors found out otherwise when the government bailed out the two failing institutions and in the process wiped out investors’ interests in the companies.
If you purchased Fannie Mae or Freddie Mac securities through a broker based on representations of government guarantees and lost the investment, contact our experienced securities fraud attorneys for a free case evaluation.