Home » Fannie Mae and Freddie Mac shares dive after Supreme Court ruling
General Other

Fannie Mae and Freddie Mac shares dive after Supreme Court ruling

Fannie Mae and Freddie Mac shares dive after Supreme Court ruling

Shares of Fannie Mae and Freddie Mac collapsed on Wednesdayafter the Supreme Court dismissed a challenge from shareholders over the sweep of profits to the Treasury. The high court ruled that as the Federal Housing Finance Agency acts as a conservator, it may aim to rehabilitate the companies in a way that serves the public and not the companies’ best interest. The Supreme Court did agree that the structure of the agency violates the separation of powers and didn’t rule out some form of compensation for shareholders. Over-the-counter shares of Fannie Mae
FNMA,
-34.82%
fell 32% and Freddie Mac
FMCC,
-32.74%
shares lost 28%. One preferred class of Fannie Mae
FNMAJ,
-64.00%
shares lost 61%.

About the author

mm

Julia Mangels

Julia has handled various businesses throughout her career and has a deep domain knowledge. She founded Stock Market Pioneer in an attempt to bring the latest news to its readers. She is glued to the stock market most of the times and just loves being in touch with the developments in the business world.

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *