Hedge fund titan Bill Ackman, founder of $19 billion Pershing Square
Capital Management, slammed the US government Tuesday night for keeping
all the profits from mortgage guarantors Fannie Mae and Freddie Mac.
Ackman called it "the most illegal act of scale" he has ever seen the US government do.
Ackman spoke Tuesday evening during a panel at Columbia University for the launch of Bethany McLean's new book "Shaky Ground." McLean and former Fannie Mae CEO Frank Raines were also panelists. Ackman, however, did most of the talking.
During the financial crisis, Fannie and Freddie needed massive bailouts and were taken over by the government. It has been seven years since the financial crisis and the companies are still in a state of conservatorship. Today, the government-sponsored enterprises make billions in profits, all of which goes directly to the Treasury.
Ackman, the largest shareholder of Fannie and Freddie, and other investors are suing the US government for taking property for public use without just compensation.
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