U.S. District Judge Royce Lamberth said the government is allowed to amend bailout agreements to send profits from Fannie Mae and Freddie Mac to the U.S. Treasury.
October 01, 2014 at 09:00 AM
1 minute read
Fannie Mae and Freddie Mac plunged in New York trading after investors including Bruce Berkowitz’s Fairholme Capital Management LLC lost a legal bid Tuesday to force the bailed-out companies to share profits with private shareholders.
The mortgage giants had surged for more than two years on speculation that shareholder rights to the earnings could be restored.
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