Fannie (FNMA), Freddie (FMCC) Stockholders Hold Out Hope as Investors Press On With Government Suits

After getting lambasted over the past few sessions after a judge threw out an investor suit against the U.S. government, which sought to compensate equity holders, speculators in Fannie Mae (OTC: FNMA) and Freddie Mac (OTC: FMCC) common stock are gearing up again on hopes the suit will fare better in appellate court or others suits will gain traction.

Yesterday afternoon, Perry Capital filed a 'Notice of Appeal' in its case which was recently denied. In a statement to StreetInsider.com on the matter Perry Capital's attorney Theodore B. Olson of Gibson, Dunn & Crutcher LLP said, "The district court’s decision overlooks important points of law and improperly resolved key questions of fact based on the government’s cherry-picked record. The merits of this case deserve to be heard in court. Today’s filing brings us closer to that objective."

Meanwhile, Bruce Berkowitz of Fairholme said he will press on in his suit. In a statement to investors Wednesday he said, "While we strongly disagree with the court's conclusions, we remain steadfast in our belief that – at a minimum – shareholders are due just compensation for the Taking that has occurred." He added, "That is, the D.C. District Court judge is either wrong or the law is unconstitutional – the issue is now quite simple. In this respect, our ongoing litigation in the Court of Federal Claims seeks to remedy this matter. " He promised investors to continue his fight. "We will continue to pursue our legal rights with the same conviction held in our other G-SIFIs (global systemically important financial institutions) – AIG and Bank of America – deemed essential to our way of life," he said.

Bill Ackman's Pershing Square in another hedge fund involved with an active suit against the government on Fannie and Freddie.

Common shares of Fannie and Freddie are each down approximatly 44% since news the suit was thrown out on Tuesday afternoon.

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