Govt had early plans to keep all Fannie, Freddie profits

As conservator of Fannie Mae and Freddie Mac, the Treasury has intended on keeping all future profits generated by the two government-sponsored enterprises (GSEs) since at least late 2010, The New York Times columnist Gretchen Morgenson writes.

But the government failed to disclose that intention to investors, according to a memo produced by a lawsuit filed by Fannie and Freddie investors, Morgenson reports. That may offer ammunition to the plaintiffs in that lawsuit, who are accusing the government of wrongly denying them their fair share of the profits that the GSEs are now raking in.

Source: The New York Times