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Fannie-Freddie Investors’ Profit Lawsuit to Be Decided by Supreme Court

  • Justices set to consider arguments for ending net worth sweep
  • Favorable ruling could mean billions for hedge fund investors
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Photographer: Bing Guan/Bloomberg
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The U.S. Supreme Court is poised to consider the fate of a lawsuit that could mean billions of dollars for shareholders of Fannie Mae and Freddie Mac and affect the push to end federal control of the mortgage giants.

In a 90-minute argument Wednesday, the justices will consider whether investors can challenge the 2012 agreements that let the government collect more than $300 billion in profits from Fannie and Freddie. A ruling in investors’ favor would give them a chance to collect a massive settlement.