Edelson & Associates, LLC is investigating whether Bank of America, JP Morgan and numerous other banks conspired to manipulate the price of Fannie Mae and Freddie Mac unsecured bonds. It has been alleged that the banks took advantage of the over-the-counter nature of buying and selling unsecured bonds to trick investors into purchasing at artificially high prices. It has been further alleged that the bank defendants were artificially increasing the price of newly issued bonds from Fannie and Freddie, with the expectation that more sales are made immediately after bonds are released than in between issuances, thereby offloading the overpriced bonds on unsuspecting investors. Older bonds also evidenced a creeping up of prices prior to the issuance of the new bonds.
The U.S. Department of Justice has been investigating whether traders have been manipulating the prices of these bonds according to a report from a news agency in June of 2018. The class period during which the alleged manipulation occurred was from January 1, 2009 until April 27, 2014.
If you have purchased an unsecured bond issued by either Fannie Mae or Freddie Mac from January 1, 2009 until April 27, 2014, please contact us by calling 215-867-2399 or by completing the form below to discuss your legal rights and options.