Posts in Category: Resources

Nader Cautions Senate Banking Committee About Johnson-Crapo Legislative Draft

April 9, 2014 Senator Tim Johnson 136 Hart Senate Office Building Washington, DC 20510 Dear Senator Johnson, A few weeks ago, Senator Crapo and you unveiled their proposal for housing finance reform. This is a critically important issue that has remained unresolved for far too long. For that reason, I thank you and Senator Crapo for at least sparking a discussion. But we have serious concerns about your proposal. Unfortunately, this is an issue that is complex, and thus, difficult for Read more [...]

Nader to Secretary Lew: Internal Treasury Memo Raises Questions

February 18, 2014 The Honorable Jacob J. Lew Secretary of the Treasury Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, D.C. 20220 Dear Secretary Lew, I am writing regarding an article published in the New York Times by the formidable Gretchen Morgenson this past weekend. The article, titled “The Untouchable Profits of Fannie Mae and Freddie Mac,” discussed an internal memo at the U.S. Treasury from 2010 which indicated that the Treasury Department was striving Read more [...]

Ralph Nader Writes New FHFA Director Mel Watt

January 7, 2014 Dear Director Watt, Congratulations on your confirmation in the Senate and recent swearing in as the director of the Federal Housing Finance Agency (FHFA). This comes at an important time. While the White House and Congress are considering how to restructure the government sponsored enterprises (GSEs), your leadership as director of the FHFA will play an important role in this process. Prior to the economic crisis, we worked for many years on a range of issues relating to Read more [...]

S. 1217 – Housing Finance Reform and Taxpayer Protection Act of 2013

The full text of S. 1217, the Housing Finance Reform and Taxpayer Protection Act of 2013, can be found here. The Congressional Research Service summary of this legislation can be found below, and online here. SUMMARY AS OF: 6/25/2013--Introduced. Housing Finance Reform and Taxpayer Protection Act of 2013 - Establishes the Federal Mortgage Insurance Corporation (FMIC) as an independent agency of the federal government to: (1) develop standard form credit risk-sharing mechanisms, products, Read more [...]

H.R. 2767 – Protecting American Taxpayers and Homeowners Act of 2013

The full text of H.R. 2767, the Protecting American Taxpayers and Homeowners Act of 2013, can be found here. The Congressional Research Service summary of this legislation can be found below, and online here. SUMMARY AS OF: 7/22/2013--Introduced. Protecting American Taxpayers and Homeowners Act of 2013 - GSE Bailout Elimination and Taxpayer Protection Act - Directs the Director of the Federal Housing Finance Agency (FHFA), five years after enactment of this Act, to appoint FHFA as receiver Read more [...]

The Fairholme Fund v. The United States of America: Cooper & Kirk, PLLC File Suit on Behalf of Mutual Fund

On July 9, 2013, the Fairholme Fund, a mutual fund with over 170,000 shareholders, announced it would be filing lawsuits in the United States Court of Federal Claims and the United States District Court for the District of Columbia. The Fairholme Fund asserts that its goal is to protect its shareholder rights as an owner of preferred stock in Fannie Mae and Freddie Mac. According to Bruce R. Berkowitz, the Chief Investment Officer of Fairholme Capital Management, The Fairholme Fund “...is owed Read more [...]

Washington Federal v. The United States of America: Two Leading Class-Action Law Firms File Suit Against the U.S. Government On Behalf of Proposed Class of GSE Shareholders

On June 10, 2013, Spector Roseman Kodroff & Willis, P.C., and Hagens Berman Sobol Shapiro, two leading class-action law firms, filed a lawsuit against the United States government on behalf of a proposed class of investors who held common and preferred stock in Fannie Mae and Freddie Mac. These firms assert in the lawsuit that the U.S. government wiped out an enormous amount of shareholder value when it entered into a conservatorship with Fannie Mae and Freddie Mac, and did so without just Read more [...]

Perry Capital LLC v. Lew, DeMarco, the Department of the Treasury, and the Federal Housing Finance Agency: Gibson Dunn & Crutcher Files Suit on Behalf of Hedge Fund

On July 7, 2013, Gibson Dunn & Crutcher filed a lawsuit against the above named defendants on behalf of the hedge fund Perry Capital LLC, a shareholder in Fannie Mae and Freddie Mac, two government sponsored enterprises (GSEs) which are currently under conservatorship of the Federal Housing Finance Agency (FHFA). On August 17, 2012, the Treasury and the FHFA amended the Preferred Stock Purchase Agreements (PSPAs) and stock certificates which were originally used to initiate a conservatorship Read more [...]

Time to Stop Undermining Homeownership

Here's a startling fact -- more than 10 million Americans have been evicted from their homes since 2007. That's nearly the entire population of the state of Michigan. Just imagine if the people of an entire state were rendered homeless overnight -- it would be quite a calamity. The news media would no doubt cover it 24/7, millions of dollars would be raised in aid, and thousands would volunteer to help shelter the displaced. Any companies responsible for such a massive displacement of people would Read more [...]

The Great Fannie and Freddie Rip-Off

By RALPH NADER I have long fought against the systemic disempowerment of investors in large public corporations, but the mistreatment of the Fannie Mae and Freddie Mac shareholders, including me, is uniquely reprehensible. For decades Fannie and Freddie behaved like other large, publicly held financial corporations. They were profit-seeking companies, listed on the New York Stock Exchange (NYSE). They displayed an unfettered drive for greater sales, profits, executive bonuses and stock options Read more [...]