Perry Capital Sues U.S. Treasury Over Fannie Mae Takeover

Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government’s seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders’ holdings.

Perry Capital, which seeks to represent investment funds in the litigation, said it wants to stop the U.S. Treasury from enforcing a so-called third amendment to preferred stock purchase agreements, according to papers filed yesterday in federal court in Washington.