Ruling in Perry Capital Appeal Shackles Fannie Mae/Freddie Mac Shareholders

One buys stock with an understanding that the rules affecting profit and loss won’t change without warning. The U.S. Court for Appeals, District of Columbia Circuit, apparently believes otherwise. On February 21, the court ruled 2-1 that investors in shares of secondary residential mortgage lenders Fannie Mae and Freddie Mac, as managed by Perry Capital LLC, a New York hedge fund, have no right to realize their accrued profits. The decision continues the federal conservatorship of the two companies established in 2008. The case was triggered by the “sweep rule” issued by the Treasury Department in August 2012. That rule confiscated dividends as repayment for $187.5 billion in emergency loans even though the corporations have repaid far more than that. The case, one of many such suits, is a lesson on the perils of government bailouts.

National Legal and Policy Center on many occasions has analyzed the Fannie Mae and …

Heath Care Task Force Showed Hillary’s Penchant for Secrecy

hillary health careOnly time will tell just how damaging the current email controversy is to Hillary Clinton. But looking back, it was the same penchant for secrecy, and disregard for rules that others must follow, that doomed her attempt to overhaul the nation’s health care system in the early Nineties, the most ambitious project of her life next to running for president.

NLPC was a plaintiff in the successful 1993 lawsuit to open the meetings and records of the task force. A good historical account of the task force, and the fight over its proposals, can be found in a 1996 book titled The First Lady: A Comprehensive View of Hillary Rodham Clinton, that I co-wrote with my brother Timothy. Here is Chapter Nine titled “Health Care:”

Calling it a tour-de-force would be an understatement. There she was, the First Lady of the United States with the media and the entire …

Lame Duck Congress Approves $4.55 Billion to Settle Pigford, Indian Land Trust Suits

money in handDemanding reparations from the federal government is now a growth industry. And Congress just helped it grow some more. Yesterday the House of Representatives voted 256-152 to authorize $4.55 billion to settle a pair of unrelated longstanding class-action lawsuits, one against the U.S. Department of Agriculture (USDA) and the other against the Department of the Interior. In the first case, tens of thousands of black farmers – or at least blacks claiming to have been farmers – will receive $1.15 billion for alleged discrimination during 1981-96 at the hands of administrators of USDA aid programs, but who filed (or could have filed) claims after the deadline. This would be on top of the more than $1 billion that over 15,000 other plaintiffs have received. In the second case, an estimated 300,000 to 500,000 Indians will receive access to a $3.4 billion trust fund intended to rectify alleged Interior Department mishandling of royalty …