The Trump administration asked the U.S. Supreme Court to toss out a lawsuit by Fannie Mae and Freddie Mac investors that challenged the federal government’s hoarding of nearly all the mortgage giant’s profits.
In an appeal filed late last week, Justice Department lawyers said a federal appeals court was wrong when it ruled in September that the investors’ lawsuit should go forward. The shareholders’ suit claims the Treasury Department and the Federal Housing Finance Agency exceeded their authority by taking all of Fannie and Freddie’s earnings. The FHFA is the companies’ regulator.
The lower court ruling has “significant financial implications...
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