Professor Helfman Reacts to Judge’s Unsealing of Documents in Fannie Mae/Freddie Mac Profit Sweep
Associate Professor of Law Tara Helfman has written about a decision by Court of Federal Claims Judge Margaret Sweeney to unseal several key documents in litigation surrounding the Treasury's 2012 decision to sweep all of Fannie Mae and Freddie Mac's profits.
According to Helfman, “The documents - excerpts of three depositions and four emails - undermine the government's position that the notorious profit sweep was essential to avoid a "death spiral" in the national housing market. However, the documents strongly suggest that no such threat existed at the time. What is more, the documents reveal that at the time of the Third Amendment, government officials had every reason to know that the Government Sponsored Enterprises' outlook was improving.”