Supreme Court Rejects Appeal by Hedge Funds in Fannie, Freddie Suits

The Supreme Court rejected a case involving hedge funds claiming the government illegally took profits from Fannie Mae and Freddie Mac. The decision leaves an appellate court ruling in place, which mostly dismissed the hedge funds' claims. Hedge funds are pursuing other legal avenues, hoping for a reversal that could return over $100 billion to Fannie and Freddie. Key players include Perry Capital, Fairholme Funds, and Pershing Square. The dispute centers on a 2012 change that allowed the government to sweep all profits from Fannie and Freddie, which hedge funds argue should be reversed.

What was the outcome of the Supreme Court's decision regarding the hedge funds' claims?

• The Supreme Court rejected the appeal.

• The Supreme Court ruled in favor of the hedge funds.

• The Supreme Court granted a hearing.

• The Supreme Court ordered a retrial.

What are the hedge funds hoping for from the Trump administration?

• A change in the law.

• A new court case.

• A decision that allows them to profit from Fannie and Freddie.

• A merger of Fannie and Freddie.

What significant change did the government make in 2012 regarding Fannie and Freddie?

• Allowed hedge funds to control profits.

• Changed the terms to sweep all profits.

• Increased the dividend to 15%.

• Merged Fannie and Freddie into one entity.

How much money do the hedge funds hope to recover if the court reverses the decision?

• $50 billion

• $100 billion

• $150 billion

• $200 billion

What was the initial dividend rate granted to the government when they took over Fannie and Freddie?

• 5%

• 10%

• 15%

• 20%