Judge: Gov’t Improperly Withheld Documents – Fannie and Freddie Investors Win Round in Suit Against U.S.
Fannie and Freddie Investors Win Round in Suit Against U.S.
The United States government improperly withheld documents from investors who were suing the government over its decision in 2012 to seize all of the profits of Fannie Mae and Freddie Mac, the mortgage finance giants, a federal judge has ruled.
The judge, Margaret M. Sweeney of the Court of Federal Claims in Washington, also ordered the release of the documents, some of which appear to reach the highest levels of the Obama administration.
Her decision, released Monday, was a win for the investors, who have contended that the government’s surprise decision to begin extracting all profits from the mortgage finance giants was an illegal taking of private property.
The government initially argued that it acted to protect taxpayers from future losses because the companies were in a death spiral, but the decision to funnel the profits into the Treasury’s general fund came just before Fannie and Freddie returned to profitability.