Hedge Funds Can't Sue Over Fannie, Freddie Investments

The video discusses a legal case involving the 2012 government decision to redirect all profits from Fannie Mae and Freddie Mac to the Treasury, impacting private shareholders. The 2014 court decision dismissed most shareholder claims, but some contract claims remain. Shareholders may pursue further legal actions, including appealing to the Supreme Court. The case highlights financial and moral issues, as taxpayers have recouped more than the bailout amount, yet the return on investment is debated.

What was the main change in the 2012 decision regarding Fannie Mae and Freddie Mac?

• The government decided to sweep all profits from Fannie and Freddie.

• The government decided to merge Fannie and Freddie.

• The government decided to sell Fannie and Freddie.

• The government decided to increase dividends for shareholders.

What was the outcome of the 2014 court decision regarding shareholders' claims?

• The court decided to nationalize Fannie and Freddie.

• The court ruled in favor of the shareholders.

• The court dismissed most of the shareholders' claims.

• The court ordered the government to return profits to shareholders.

Which legal option is NOT available to shareholders after the recent court decision?

• Pursuing breach of contract claims in a lower court

• Filing a new lawsuit in a different court

• Appealing to the Supreme Court

• Seeking a wider hearing at the appellate court

What is the irony mentioned regarding the taxpayers' recoupment of the bailout funds?

• Taxpayers have received dividends from Fannie and Freddie.

• Taxpayers have recouped more than the bailout amount, yet the return is not satisfactory.

• Taxpayers have recouped less than the bailout amount.

• Taxpayers have not recouped any of the bailout funds.

What is one of the moral arguments made by lawmakers against shareholders' claims?

• The government should not have bailed out Fannie and Freddie.

• The bailout was a loan, not an equity investment.

• Shareholders should not profit from a government bailout.

• The bailout funds were misused by Fannie and Freddie.