Freddie Mac is backed by the federal government but its stock is publicly traded
So now if your stocks decrease in value, sue them. And why if it was retirement and Pension money would you invest in the stock market? Everybody knows when you get near retirement you shift your money into fixed income.
There are three ways to invest in Fannie/Freddie: the Fannie/Freddie bonds, which are rated “AAA” and as such, should be entirely suitable for any pension plan investment, preferred stock and then the common stock.
Pension plans are regularly invested in stocks. You, as an individual, need to change your asset mix as you get nearer to retirement, because you’re not generating new income to replace any losses you might suffer. A pension plan, with more money coming in every year from young employees, regularly has investments in stocks as well as bonds. Some of the pension plan will be in cash and cash equivalent assets to make that money ready to be paid to retirees drawing on the plan at the current time. There are plenty of pension plans that even have some of their assets placed with hedge funds and funds of hedge funds. CalPERS is an excellent example.
Fannie/Freddie’s debt, preferreds and common stocks used to be a very sound investment for long-term investors. The accounting irregularities and now the fiscal malfeasance of Fannie/Freddie in the sub-prime market are more than ample grounds for debtholders and investors in these two GSE’s to open lawsuits against them.