Richard Perry’s Perry Capital Seeks Injunction against Treasury’s Fannie Mae Profit Grab
|July 10th, 2013||
|Perry Capital LLC founder, Richard Perry, is leading the fight against U.S. Treasury Department’s attempts to subordinate Fannie Mae investors’ profits to the taxpayer bailout recovery. As reported by Bloomberg News, Perry Capital has filed suit in the U.S. District Court for the District of Columbia seeking to stop the U.S. Treasury from using a “third amendment” to change the terms of the preferred securities it purchased in its bailout of Fannie Mae and Freddie Mac. The changes would effectively allow the government to seize all of the profits from Fannie Mae and Freddie Mac, leaving investors in a subordinated position and effectively rendering their investments valueless.|
Counsel for the plaintiffs has expressed the view that such a move would be a blatant overreach by the government and illegal. With the use of the third amendment, the government’s dividend take this year was over $66 billion as compared to $4.7 billion which it would have otherwise received.
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