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Fannie Mae and Freddie Mac Stock Losses

The credit crisis and collapse of the sub-prime mortgage market has led to the collapse of both Fannie Mae and Freddie Mac, two of the largest issuers of preferred stock over the past decade.  In turn, Wall Street has underwritten much of this debt and unloaded it on unsuspecting investors looking for income-generating investments that are consistent with their risk profile.

Zamansky LLC is representing investors including retirees and institutional investors such as endowments that purchased shares of Fannie Mae and Freddie Mac based on fraudulent information provided to them by their stock brokers.

Investors were led to believe these stocks were “conservative” and would provide steady income through above-average dividends.  Moreover, investors were told that the Federal Government would assure that their investments were safe.

Millions of investors have seen their portfolios and retirement accounts devastated by the collapse of Fannie Mae and Freddie Mac, which should have been prevented.  Brokers have a fiduciary responsibility to only recommend investments that are in line with a client’s risk tolerance and they should never over expose a client to single investment.

At a minimum, brokers should have convinced clients to diversify out of their Fannie Mae and Freddie Mac holdings as it became clear that the subprime mortgage crisis would have material effects on these two companies.  Brokers that failed to protect their clients may have put their own commissions on stock purchases ahead of their client’s interests or were incompetent or negligent.  On both accounts, brokers are likely to be held accountable for their actions through FINRA arbitration.

Zamansky LLC has already filed several claims on behalf of investors that lost money due to the collapse of Fannie Mae and Freddie Mac.  We offer free consultations and ensure confidentiality.

Client Reviews

“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
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