The Real Deal New York

Fannie and Freddie will likely keep $130B in profit from 2013

February 11, 2014 06:35PM

The legal tug-of-war over the more than $130 billion that mortgage giants Fannie Mae and Freddie Mac made last year, all of which was handed over to the Treasury Department, is looking grim for the government. 

In 2012, the Treasury tweaked the terms of the bailout agreement it had with Fannie and Freddie when it seized the two companies on the verge of collapse, which increased the amount they paid out to seven times what they would have paid under the previous agreement, according to the Wall Street Journal.

Investors are betting that plaintiffs in the lawsuit who claim the money belongs to the companies will win the case. About 20 suits have been filed, but even a win might not mean a settlement for awhile.

“If investors are going to get any money out of this, it’s going to come out of the courts, and it’s going to take years,” David Felt, a lawyer who headed litigation with the Federal Housing Finance Agency, told the Journal. [WSJ] – Angela Hunt

2 Responses to “Fannie and Freddie will likely keep $130B in profit from 2013”

  1. February 11, 2014 at 11:29 pm, Richard Thompson said:

    They simply need to release these two from conservatorship and save face. The sub prime is over and housing reform is a mute point.

  2. February 12, 2014 at 5:09 am, GretaSchlachter said:

    I am totally admired for the Hardworking of Fannie and Freddie to keep 130 b in profit.

comment form

You must be logged in to post a comment.