Fannie, Freddie Soar as Hedge Funds Score Wins on Two Fronts
- Mnuchin says he’s negotiating with FHFA on retaining earnings
- Shareholders also notch rare legal victory on profit sweep
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Fannie Mae and Freddie Mac soared the most in almost three years Monday as hedge funds that have long hoped to make a windfall on their investments in the mortgage giants got a double-dose of good news.
First, shareholders won an important legal victory after markets closed Sept. 6 that gave them renewed optimism of getting their hands on billions of dollars in company profits that now go to the government.