Avoiding crowdfunding follies and how the fed sucks fear out of the market
Never underestimate the wrath of a shareholder scorned. Investors in Fannie and Freddie are suing the US government, which took control of the mortgage giants in 2008. In exchange for $188 billion in bailout money, the Treasury got to keep all quarterly profits going forward, as well as high dividend payments alleged by the Plaintiffs to be “usurious.” So this might be shareholders’ last chance to recoup their money -- now that administration officials have talked about winding down the mortgage giants. Fannie and Freddie already returned $59 billion to the Treasury after posting high profits last quarter. But most of that was due to a change in tax asset classification.
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