A federal appeals court has rejected a shareholder appeal in a lawsuit challenging the U.S. government’s ability to seize all of the quarterly profits generated by Fannie Mae and Freddie Mac after the companies’ bailout amid the 2008 financial crisis.

In a precedential opinion, a three-judge panel of the U.S. Court of Appeals for the Third Circuit ruled Wednesday that the federal agency created to oversee the government-sponsored firms was acting within its power in 2012, when it changed the bailout terms, for the third time, to force the Fannie and Freddie to pay the U.S. Department of the Treasury quarterly dividends equal to their net worth.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]