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Supreme Court Rejects Hedge Funds on Fannie, Freddie Suits

  • U.S. Supreme Court won’t take up challenges to profit sweep
  • Decision leaves 2017 ruling against GSE investors intact
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Bloomberg’s Joe Light reports on the Supreme Court’s rejection to revive core parts of the lawsuits.(Source: Bloomberg)
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The U.S. Supreme Court dealt hedge funds and other big investors a blow Tuesday by refusing to revive core parts of lawsuits that challenged the federal government’s capture of billions of dollars in profits generated by Fannie Mae and Freddie Mac.

The justices provided no comment on why they rejected appeals filed by Perry Capital LLC, Fairholme Funds and other Fannie and Freddie shareholders. The rebuff leaves intact a federal appeals court ruling from a year ago that sent Fannie and Freddie shares plunging.