The Supreme Court has denied a request by speculative investors in the government-sponsored enterprises to reconsider a case against the government. The decision could open the door to an initial public offering.
At issue are Senior Preferred Stock Purchase Agreements put in place with the Department of the Treasury when Fannie Mae and Freddie Mac were thrust into conservatorship in 2008.
An August 2012 amendment made to the PSPAs required that Fannie and Freddie pay a variable dividend to the Treasury based on the amount that their net worth exceeded the required capital buffer.
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From:: Financing