Sun | Jun 16, 2019

More business in brief

Published:Thursday | October 2, 2014 | 12:00 AM

Judge rules against investors in gov't dispute

A federal judge on Tuesday ruled against investors who are trying to collect billions of dollars in profits of government-chartered mortgage companies Fannie Mae and Freddie Mac.

The decision by US District Judge Royce Lamberth to dismiss the investors' lawsuits was a victory for the government.

"There can be no doubt" that the investors understood the risks involved in investments in closely regulated companies such as Fannie Mae and Freddie Mac, Lamberth wrote, and therefore have no reasonable expectation of profiting.

During the recent mortgage crisis, the government pumped US$187 billion into the troubled companies, which have since recovered and now have quarterly profits running into the billions.

Among those suing the government are hedge fund firm Perry Capital LLC and mutual fund company Fairholme Capital Management LLC.

Housing agency apologises after home collapses

The state-owned Housing and Land Development Corporation (HLDC) has apologised to homeowners in the government's housing development in Clare Valley, St Vincent & the Grenadines, where a house collapsed last month.

"Let me first of all say to you that the HLDC deserves the licks that we are receiving. I listened to you attentively. I looked at the video slides and I think your concerns are genuine concerns," HLDC chairman Beresford Phillips told a meeting of homeowners and state officials.

Homeowners have complained that their two and three-bedroom concrete houses were shaking, had no drainage and poor finishing.

On September 19, a three-bedroom house belonging to physician Katisha Douglas collapsed.

Prime Minister Ralph Gonsalves cited poor engineering, poor drainage, and the soil toil as contributing factors.

The government has said it will reconstruct a house for Douglas and correct the problems at other houses in the area.