Pension Funds Could Sue Fannie, Freddie Boards

[Omaha Steve]

http://legaltimes.typepad.com/blt/2008/09/pension-funds-c.html

Pension Funds Could Sue Fannie, Freddie Boards

Richard Ferlauto, director of corporate governance and investment for the American Federation of State, County and Municipal Employees (AFSCME) says he believes several of the large public pension funds heavily invested in Fannie Mae and Freddie Mac stock will sue the outgoing management of the two companies.

Ferlauto says the funds are unlikely to sue the government, but are likely to sue Fannie Mae and Freddie Mac’s old board of directors and CEO’s on issues of transparency, incorrect guidance, fraud, and market manipulation. He added he has not seen any provisions in the deal that would protect the government and mortgage institutions from such suits.

“This is really an odd situation because we don’t know who’s in control corporately,” Ferlauto said.

Ferlauto said he expects suits from the “largest pension funds that have taken the largest hits,” though he wouldn’t name any. He also wouldn’t say which law firms he expects to be involved with the litigation.

Posted by Brian Katkin on September 08, 2008 at 11:52 AM

[screembloodymurder]

1. We're being looted.

Our pensions are being destroyed. Rise up and fight the oppressors.