Politics
Fannie, Freddie Plunge as High Court Deals Blow to Investors
- Justices throw out core part of multibillion-dollar lawsuit
- Ruling also gives Biden power to fire FHFA Director Calabria
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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.
The justices threw out a core part of the investors’ lawsuit, rejecting claims that the Federal Housing Finance Agency exceeded its authority under federal law. Fannie and Freddie cratered, each plunging the most in intraday trading since 2013.