Billionaire investor Bill Ackman and Michael Burry are urging President Donald Trump to end the government conservatorship of Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC), warning that the ongoing seizure of the companies’ profits is “outright theft” that threatens the stability of the broader U.S. banking sector.
The ‘Net Worth Sweep’ Controversy
In a detailed public statement, Pershing Square’s Ackman argued that Fannie Mae and Freddie Mac (F2) have fully repaid their $193 billion government bailout, plus an additional $25 billion.
Despite this, the Treasury continues to hold the original liability on its balance sheets due to the Obama-era “Net Worth Sweep,” a unilateral amendment that directed 100% of F2’s profits to the government.
Ackman condemned the sweep as an unconstitutional maneuver designed to prevent F2 from ever recapitalizing, calling it the “outright theft of the forever profits of both companies.”
He clarified that shareholders are not seeking a handout, but are simply asking the government to honor the original bailout terms and properly account for the …
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