General World News

Fannie, Freddie shareholders awarded $612M

The regulator of Fannie Mae and Freddie Mac improperly amended stock purchase agreements in 2012 when it allowed the U.S. Treasury to sweep up the companies’ net profits, a jury in Washington, D.C. found Monday.

The jury awarded shareholders of the government sponsored enterprises a total of $612.4 million in damages.

Fannie Mae will pay junior preferred shareholders $299.4 million and Freddie will pay $281.8 million. The jury also issued $31.4 million to owners of Freddie’s common shares.

The surprising verdict in Berkley v. FHFA comes after the case was dismissed in October due to a hung jury.

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