The Ohio Public Employees Retirement System and the Ohio State Teachers’ Retirement System have sued the Federal Housing Finance Agency, Pensions & Investments reports. The Columbus funds have urged a judge to scrap an agency rule which they claim singles out securities fraud victims and restricts their ability to recover their losses from Fannie Mae. The complaint alleges that the rule, which became effective July 20, subordinates securities fraud claims to the lowest level of priority in receivership, on a par with ordinary equity interests. The housing agency is the conservator and regulator of Fannie Mae and Freddie Mac.

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