The US Supreme Court rejected four appeals from Fannie Mae and Freddie Mac shareholders who sued for compensation. The lawsuits were first filed after a 2012 agreement that modified the government’s bailout resulted in the Treasury collecting more than $100 billion in profits from the government-sponsored enterprises. The shareholders said that so-called profit sweep was an unconstitutional taking of private property. The Supreme Court made no comment in leaving intact a federal appeals court decision that tossed out the lawsuits. This rejection follows a 2021 Supreme Court decision that rejected the bulk of a separate investor lawsuit that used other legal arguments to try to invalidate the profit sweep.
