Fannie, Freddie Plunge as High Court Deals Blow to Investors (2)

The U.S. Supreme Court dealt a punishing blow to Fannie Mae and Freddie Mac investors in their challenge to the government’s collection of more than $100 billion in profits from the government-sponsored enterprises.

The justices threw out a core part of the investors’ lawsuit, rejecting claims that the Federal Housing Finance Agency exceeded its authority under federal law. Fannie and Freddie cratered, each plunging the most in intraday trading since 2013.

Fannie Mae and Freddie Mac shares plunge on Supreme Court ruling.

Source: Bloomberg)

Investors, the court said, might be able to win damages on a separate claim that some payments under the so-called profit sweep were illegal because the FHFA ...