Freddie Mac / Fannie Mae Preferred Stock

Merrill Lynch and other brokerage firms sold billions of dollars of preferred stock issued by Freddie Mac and Fannie Mae. Many investors were lead to believe that these were conservative investments watched over by the U.S. Government and they were never informed about the deteriorating financial condition of Freddie Mac and Fannie Mae. During the sub-prime mortgage crisis, the federal government took over Fannie Mae and Freddie Mac placing them into conservatorship. This left preferred shares investors with essentially worthless investments. If you invested in Freddie Mac and/or Fannie Mae Preferred Shares, contact Blum Law Group for a free consultation.

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