Earlier this year, an appeals court ruled the government’s “net worth sweep,” or the FHFA’s practice of claiming all GSE profits, to be unconstitutional. The government has argued that the money was needed in the event that Fannie Mae and Freddie Mac needed to be bailed out again. The suit, brought by Fannie and Freddie shareholders, ruled in favor of the GSEs. Despite this decision, the Department of Justice has asked the Supreme Court to hear the case, arguing that the Court of Appeals “erred” in its decision.
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