U.S. Supreme Court rejects investor suits over Fannie Mae, Freddie Mac profits

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.