Fannie-Freddie Investors Rejected by High Court on Profit Sweep

The US Supreme Court turned away four appeals from Fannie Mae and Freddie Mac shareholders who said they were entitled to compensation after the Treasury collected more than $100 billion in profits from the government-sponsored enterprises.

The investors argued unsuccessfully that the so-called profit sweep, part of the 2012 agreements that modified the government’s bailout of the companies, was an unconstitutional taking of private property.

The Supreme Court made no comment in leaving intact a federal appeals court decision that tossed out the lawsuits, including one pressed by Fairholme Funds Inc. and W.R. Berkley Corp.

The rebuff follows a 2021 ...