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Supreme Court Sends Mixed Signals on Fannie-Freddie Investor Claims

  • Both sides draw tough questions in argument on profit sweep
  • Shares surge during Supreme Court session before paring gains
The U.S. Supreme Court stands in Washington, D.C., U.S. on Tuesday, Oct. 6, 2020. Alphabet Inc.'s Google and Oracle Corp. will face off in the U.S. Supreme Court on Wednesday in a multibillion-dollar copyright dispute with sweeping implications for technology and media companies worldwide.
The U.S. Supreme Court stands in Washington, D.C., U.S. on Tuesday, Oct. 6, 2020. Alphabet Inc.'s Google and Oracle Corp. will face off in the U.S. Supreme Court on Wednesday in a multibillion-dollar copyright dispute with sweeping implications for technology and media companies worldwide.Photographer: Bloomberg/Bloomberg
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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.