WASHINGTON, July 7 Perry Capital LLC said on
Sunday it was filing a lawsuit on behalf of several
institutional investment funds to challenge the bailout terms
set by the U.S. Treasury for government-owned mortgage firms
Fannie Mae and Freddie Mac.
The lawsuit alleges that the Treasury and the regulator for
Fannie Mae and Freddie Mac violated a 2008 law that put the two
mortgage companies into conservatorship as they faced insolvency
at the height of the U.S. financial crisis.
The Treasury Department changed the bailout terms last
year, forcing Fannie Mae and Freddie Mac to hand over most of
their profits to the government, replacing a requirement that
the companies pay quarterly dividends of 10 percent on the
government's nearly 80 percent stake.