The U.S. Supreme Court dealt a blow to Fannie Mae and Freddie Mac investors on Wednesday, throwing out their claim that the federal government exceeded its authority by collecting more than $100 billion in profits from the government-sponsored enterprises. Shares of both tumbled more than 30% on the news.
The decision is a setback for firms that have sought for years to persuade the government to release Fannie and Freddie from government control.
