Perry Capital hedge fund led by a group of investors sued in federal court challenging the U.S. Treasury Department on Sunday is set to change in 2012, government-owned mortgage companies Fannie Mae (Fannie Mae) and Freddie Mac ( Freddie Mac) bailout terms.
Ministry of Finance and regulatory agencies Fannie Mae (Fannie Mae) and Freddie (Freddie Mac) in Washington, filed in U.S. District Court lawsuit alleging a violation of the laws of 2008, to take over the two mortgage companies because they bankruptcy of the U.S. financial crisis level.
Last year, the Ministry of Finance revised bailout terms, forcing Fannie Mae (Fannie Mae) and Freddie (Freddie Mac) to surrender most of their profits to the government, the replacement requiring the company to pay quarterly dividend of 10 percent, nearly 80 percent of the government's stake.
In the suit named Treasury and the Federal Housing Finance Agency (FHFA), Fannie Mae (Fannie Mae) and Freddie (Freddie Mac) regulation.
Perry Capital, in 2010 started to invest in two companies in the lawsuit claimed that shareholder value is damaged, the government formulated the "sweep dividend."
The new arrangements to prevent funds for construction companies, the government may allow them to redeem the shares, and ultimately operate independently private shareholders.
Does not provide a mechanism for Fannie Mae (Fannie Mae) and Freddie (Freddie Mac) bailout agreement, the repayment 187.5 one billion U.S. dollars of aid from 2008, they owe the government.
The two companies have returned to profitability by the end of June, the taxpayer paid about $ 13.2 billion in dividends. Their financial situation has prompted investors to buy a stake, they will in the future private companies Fannie Mae (Fannie Mae) and Freddie (Freddie Mac) preferred shares.
"This lawsuit seeks to uphold the rule of law, partnership law firm Gibson, Dunn & Crutcher, former U.S. Attorney General," Theodore Olson, said in a statement.
He said the 2008 Housing and Economic Recovery Act, "known as HERA, establish specific rules to take over government restrictions and obligations.
Fannie Mae (Fannie Mae) and Freddie (Freddie Mac) profit also led Perry Capital and other hedge fund Paulson & Co., to promote the Parliament to consider the two mortgage finance institutions privatized in order to improve their preferred stock purchase value.
"Investors have the right to expect that these rules should be followed," Olsen said.
With President Obama, Republicans and Democrats, want to cancel the two mortgage companies, but no consensus is the right approach.
A bipartisan group of U.S. senators last month introduced a bill that would re-insurance companies and the Government Securities Clearing Corporation mortgage, they will check and replace private capital in a crisis.
Fannie Mae (Fannie Mae) and Freddie (Freddie Mac) does not make loans, but rather buy from a lender, and package them into bonds, and to guarantee their default. A key part of the housing system, the two mortgage finance institution itself or back all U.S. home loans by about half.
Perry Capital Management investment funds, retirement plans, university endowments, foundations, insurance companies and other institutional and private investors. Perry Capital in many different housing-related securities made significant investments, according to a press release.
"Yes we are pursuing, is to ask the U.S. Treasury and the Federal Housing Finance Agency obey the rules set out in the Housing and Economic Recovery Act," in 2008, lawyers involved in litigation, speaking on condition of anonymity, told reporters on a conference call. "There is no seeking damages."
 



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