Rop v. Fed. Hous. Fin. Agency
Decision Date | 08 September 2020 |
Docket Number | File No. 1:17-CV-497 |
Citation | 485 F.Supp.3d 900 |
Parties | Michael ROP, et al., Plaintiffs, v. FEDERAL HOUSING FINANCE AGENCY, et al., Defendants. |
Court | U.S. District Court — Western District of Michigan |
Ashley Grace Chrysler, Matthew T. Nelson, Warner Norcross & Judd LLP, Grand Rapids, MI, for Plaintiffs.
Asim Varma, Howard Neil Cayne, Robert J. Katerberg, Arnold & Porter Kaye Scholer LLP, Washington, DC, D. Andrew Portinga, Miller Johnson PLC, Grand Rapids, MI, for Defendant Federal Housing Finance Agency.
Asim Varma, Howard Neil Cayne, Arnold & Porter Kaye Scholer LLP, Washington, DC, D. Andrew Portinga, Miller Johnson PLC, Grand Rapids, MI, for Defendant Mark A. Calabria.
Michael L. Shiparski, U.S. Attorney, Grand Rapids, MI, R. Charlie Merritt, U.S. Department of Justice, Washington, DC, for Defendant Department of the Treasury.
This case represents yet another attempt by shareholders of Fannie Mae and Freddie Mac to undo an agreement struck by the conservator of those entities, the Federal Housing Finance Agency (FHFA), with the Department of the Treasury. That agreement secured unlimited funding for Fannie and Freddie from Treasury in exchange for almost all of Fannie's and Freddie's future profits. The shareholders were understandably disappointed by this arrangement because it rendered their shares worthless. Thus far, however, all attempts to unwind the agreement have failed in courts across the country. This case is headed for the same result.
The agreement giving rise to this lawsuit is known as the "Third Amendment."
The Court of Appeals for the District of Columbia Circuit summarized the relevant factual background for the Third Amendment as follows:
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