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 “ 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 [...]

Need for an Inspector General Investigation of and Congressional hearings about Misleading Statements by high government officials about the financial health of Fannie Mae & Freddie Mac Prior to the Government imposed Conservatorship

April 11, 2011 TO: Inspector General Eric Thorson Department of the Treasury 1500 Pennsylvania Avenue, N.W. Room 4436, Washington, DC 20220 Senator Tim Johnson Chairman U.S. Senate Committee on Banking, Housing, and Urban Affairs 136 Hart Senate Office Building Washington, DC 20510 Representative Spencer Bachus Chairman House Financial Services Committee 2246 Rayburn Building Washington, DC 20515 FR: Ralph Nader P.O. Box 19312 Washington, DC 20036 RE: Need for an Inspector Read more [...]

Letter to Secretary of the Treasury

May 23, 2013 The Honorable Jacob J. Lew Secretary of the Treasury Department of the Treasury 1500 Pennsylvania Avenue NW Washington, D.C. 20220 Dear Secretary Lew: As you know the Housing and Economic Recovery Act of 2008 authorized the U.S. government to place government-sponsored enterprises (GSEs) in a conservatorship. On September 7, 2008, the Federal Housing Finance Agency (FHFA) established a conservatorship for Fannie Mae and Freddie Mac and assumed control of these two GSEs. Read more [...]

Letter to Director Edward DeMarco

April 20, 2012 Director Edward DeMarco’s Office 400 7th Street NW Washington, D.C. 20024 Director Edward DeMarco, On April 14, the Washington Post published an article titled, “The bailout could turn a profit, but that’s not entirely a good thing.” In the article, it is revealed that the U.S. Treasury has modified its projected cost of the bailout. The expected cost to bailout Fannie Mae and Freddie Mac was projected in 2010 to be about $53 billion by 2020. However, the article Read more [...]


Remarks by Jim Millstein, Chairman and CEO of Millstein & Co. "A Blueprint for Housing Finance Reform in America." May 22, 2012. Statement of Sarah Rosen Wartell, then-Executive Vice President of Center for American Progress Action Fund. At a Hearing on "GSE Reform: Immediate Steps to Protect Taxpayers and End the Bailout," before the Committee on Financial Services Subcommittee on Capital Read more [...]