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, -32.14% fell 32% and Freddie Mac FMCC, -33.18% shares lost 28%. One preferred class of Fannie Mae FNMAJ, -60.00% shares lost 61%.