Shares of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) fell off a cliff after U.S. District Judge Royce Lamberth threw out two prominent cases against the government, capping a steady two-month decline with one-day 36% drop. There’s no question that the court ruling is a major blow to Fannie Mae and Freddie Mac shareholders, but it’s also just one part of a larger court battle that was always expected to last for years.
The legal battle over Fannie, Freddie is far from over
Lamberth’s decision will probably be appealed, and Fairholme’s case in the US Federal Claims Court under Judge Margaret Sweeney is still moving Setup a free account to get access to this article (no credit card required).Login required to continue reading.
