Fannie-Freddie Investors Get Mixed Signals From High Court (1)

Shareholders of Fannie Mae and Freddie Mac got a mixed reception at the U.S. Supreme Court on a lawsuit that seeks billions of dollars and could affect the push to end government control of the mortgage giants.

Hearing arguments by phone Wednesday, the justices considered whether investors can challenge the 2012 agreements that let the federal government collect more than $300 billion in profits from Fannie and Freddie. A ruling in the investors’ favor in the case would give them a chance to collect a massive settlement.

Most justices directed tough questions at lawyers for both sides. Chief Justice John ...