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Thursday, July 9, 2020

Fannie, Freddie shares pop after Supreme Court agrees to hear sweeps case

Fannie Mae (OTCQB:FNMA) jumps 5.o% and Freddie Mac (OTCQB:FMCC) climbs 7.2% after the Supreme Court agrees to decide whether investors can challenge the 2012 agreement that allowed the federal government to collect hundreds of billions of dollars of the government-sponsored enterprises’ profits.

Technically, the court will hear an appeal by the Trump administration seeking to avoid a lawsuit by shareholders of the mortgage finance giants relating to the government rescue of the GSEs after the 2008 financial crisis.

It also will hear a related appeal brought by shareholders that challenges the constitutional structure of the agency.


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