Fannie-Freddie Fate a Mystery After High Court Market Shock

Supreme Court decision crushes investors who bet on a windfall
Biden gets carte blanche to decide future of housing policy

WATCH: 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. (Source: Bloomberg)

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By Joe Light

June 23, 2021 at 9:21 PM UTC

Updated on

June 24, 2021 at 1:32 AM UTC

This article is for subscribers only.

In one fell swoop, the Supreme Court crushed Fannie Mae and Freddie Mac shareholders and gave President Joe Biden carte blanche to rewrite the rules for the U.S.’s massive housing market.

Left unanswered was the same question that’s befuddled Washington for more than a decade: Will anyone ever figure out what to do with Fannie and Freddie, which backstop a whopping $5.7 trillion of mortgages?