The Most Important Thing for Fannie Mae and Freddie Mac Investors

Handfuls of Fannie Mae (NASDAQOTCBB: FNMA  ) and Freddie Mac (NASDAQOTCBB: FMCC  ) shareholders have filed lawsuits against the U.S. government claiming the Treasury acted illegally when it amended the terms of the companies' deal with the government in 2012. A judge recently chose not to dismiss the case and allowed the proceedings to move forward. Is this the best possible option for shareholders to benefit while the operating companies remain under FHFA-run conservatorship?

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson debate this notion and tell investors why waiting on the government to act could take years and the lawsuit may play out quicker.

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  • Report this Comment On March 01, 2014, at 10:34 AM, smauney wrote:

    And the most important thing for FnF investors is understanding that the Treasury does not want to hand over all of the damning memos and emails that will be brought to light in the discovery process - which will fuel additional lawsuits that will pile on top of the (approximately 20) lawsuits already filed. That's the most important thing to understand at this point.

  • Report this Comment On March 01, 2014, at 11:48 PM, SELLmtg wrote:


  • Report this Comment On March 01, 2014, at 11:58 PM, SELLmtg wrote:

    Hello, Fnf is not a bad idea. But PMCM is also a good idea.

    PMCM is a marijuana stock ( marijuana cultivation center in CA to lease to 6 marijuana growers (, news dated 2/14) AND PMCM has been applying for an marijuana license to grow marijuan in Canada (news dated 2/24)).

    PMCM=0.0014 (as of 2/28) and will go up very high when it begins leasing the marijuana center to marijuana growers and will skyrocket when it gets its marijuana license from Canada.

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Matt Koppenheffer

Matt is the Managing Director of The Motley Fool GmbH, The Fool's German business. Besuch uns bei!

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Related Tickers

8/28/2015 3:59 PM
FMCC $2.18 Up +0.10 +4.81%
Freddie Mac CAPS Rating: **
FNMA $2.28 Up +0.09 +4.11%
Fannie Mae CAPS Rating: **