Pershing Square Activist Presentation Deck
Fannie Mae ("FNMA") and Freddie Mac ("FMCC")
Despite an adverse Supreme Court ruling in June, we believe Fannie
and Freddie remain valuable perpetual options
Fannie Mae
Freddie
Mac
Supreme Court largely sided with the government against shareholders
Found the Third Amendment to the PSPAs (1) to be authorized under the
HERA statute
■ Declined to intervene to second-guess FHFA's exercise of its discretion
Found unconstitutional HERA's provision that the FHFA director may be
removed only for cause
■ Sent case back to Fifth Circuit for further proceedings and potential damages
We remain confident in the long-term value of Fannie and Freddie
Ongoing proceedings in the Court of Federal Claims, where denial of the
government's motion to dismiss is on appeal
Both entities continue to build capital through retained earnings from
the current base of $67 billion
We believe re-privatization is an eventuality regardless of court outcomes
Source: Company filings
(1) Preferred Stock Purchase Agreement.
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