October Term 2020 · Docket 19-422
Does the Net Worth Sweep violate shareholder rights?
Shareholders claim the government's capital sweep unfairly targets them. The government argues the move protects the housing finance system.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
- — An official Court opinion was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Thompson argued the sweep leaves Fannie and Freddie with no reasonable prospect of adequate capital.
Mr. Mooppan stated FHFA replaced multibillion-dollar dividend obligations with a variable dividend tied to net worth.
Mr. Nielson argued an acting director lacks tenure unless Congress explicitly grants it in a statute.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 31-41 — Transcript, file page 10, lines 31-41
- Official Supreme Court Transcript — file page 102, lines 19-21 — Transcript, file page 102, lines 19-21
- Official Supreme Court Transcript — file page 11, lines 31-55 — Transcript, file page 11, lines 31-55
- Official Supreme Court Transcript — file page 13, lines 27-55 — Transcript, file page 13, lines 27-55
- Official Supreme Court Transcript — file page 14, lines 15-27 — Transcript, file page 14, lines 15-27
- Official Supreme Court Transcript — file page 14, lines 33-43 — Transcript, file page 14, lines 33-43
- Official Supreme Court Transcript — file page 14, lines 49-49 — Transcript, file page 14, lines 49-49
- Official Supreme Court Transcript — file page 15, lines 17-25 — Transcript, file page 15, lines 17-25
- Official Supreme Court Transcript — file page 15, lines 47-55 — Transcript, file page 15, lines 47-55
- Official Supreme Court Transcript — file page 17, lines 21-33 — Transcript, file page 17, lines 21-33
- Official Supreme Court Transcript — file page 40, lines 29-23 — Transcript, file page 40, lines 29-23
- Official Supreme Court Transcript — file page 5, lines 11-23 — Transcript, file page 5, lines 11-23
- Official Supreme Court Transcript — file page 5, lines 25-23 — Transcript, file page 5, lines 25-23
- Official Supreme Court Transcript — file page 63, lines 21-11 — Transcript, file page 63, lines 21-11
- Official Supreme Court Transcript — file page 66, lines 15-35 — Transcript, file page 66, lines 15-35
- Official Supreme Court Transcript — file page 66, lines 37-17 — Transcript, file page 66, lines 37-17
- Official Supreme Court Transcript — file page 67, lines 19-25 — Transcript, file page 67, lines 19-25
- Official Supreme Court Transcript — file page 67, lines 41-51 — Transcript, file page 67, lines 41-51
- Official Supreme Court Transcript — file page 68, lines 27-53 — Transcript, file page 68, lines 27-53
- Official Supreme Court Transcript — file page 69, lines 37-55 — Transcript, file page 69, lines 37-55
- Official Supreme Court Transcript — file page 7, lines 25-53 — Transcript, file page 7, lines 25-53
- Official Supreme Court Transcript — file page 71, lines 9-15 — Transcript, file page 71, lines 9-15
- Official Supreme Court Transcript — file page 72, lines 21-33 — Transcript, file page 72, lines 21-33
- Official Supreme Court Transcript — file page 72, lines 55-13 — Transcript, file page 72, lines 55-13
- Official Supreme Court Transcript — file page 73, lines 19-33 — Transcript, file page 73, lines 19-33
- Official Supreme Court Transcript — file page 74, lines 43-23 — Transcript, file page 74, lines 43-23
- Official Supreme Court Transcript — file page 74, lines 9-33 — Transcript, file page 74, lines 9-33
- Official Supreme Court Transcript — file page 75, lines 27-29 — Transcript, file page 75, lines 27-29
- Official Supreme Court Transcript — file page 76, lines 41-21 — Transcript, file page 76, lines 41-21
- Official Supreme Court Transcript — file page 8, lines 23-37 — Transcript, file page 8, lines 23-37
- Official Supreme Court Transcript — file page 9, lines 17-31 — Transcript, file page 9, lines 17-31
A citizen's guide to the whole case
What this case is about
Fannie Mae and Freddie Mae shareholders sue the government. They claim the Net Worth Sweep violates their rights. The government defends the action as necessary for stability.
Official sources for this section
- Official Supreme Court Transcript — file page 102, lines 19-21 — Transcript, file page 102, lines 19-21
- Official Supreme Court Transcript — file page 40, lines 29-23 — Transcript, file page 40, lines 29-23
- Official Supreme Court Transcript — file page 5, lines 25-23 — Transcript, file page 5, lines 25-23
- Official Supreme Court Transcript — file page 63, lines 21-11 — Transcript, file page 63, lines 21-11
- Official Supreme Court Transcript — file page 66, lines 37-17 — Transcript, file page 66, lines 37-17
How the case got here
The Supreme Court heard oral argument in this case on December 9, 2020.
Official sources for this section
- Official Supreme Court Transcript — file page 5, lines 11-23 — Transcript, file page 5, lines 11-23
- Official Supreme Court Transcript — file page 76, lines 41-21 — Transcript, file page 76, lines 41-21
What each side wants
Shareholders want the court to strike down the Net Worth Sweep.
The government wants the court to uphold the Net Worth Sweep.
Official sources for this section
- Official Supreme Court Transcript — file page 102, lines 19-21 — Transcript, file page 102, lines 19-21
- Official Supreme Court Transcript — file page 40, lines 29-23 — Transcript, file page 40, lines 29-23
- Official Supreme Court Transcript — file page 5, lines 25-23 — Transcript, file page 5, lines 25-23
- Official Supreme Court Transcript — file page 63, lines 21-11 — Transcript, file page 63, lines 21-11
- Official Supreme Court Transcript — file page 66, lines 37-17 — Transcript, file page 66, lines 37-17
What each side says
Shareholders argue the sweep leaves the companies with no reasonable prospect of adequate capital.
The government argues the sweep protects the housing finance system from collapse.
Official sources for this section
- Official Supreme Court Transcript — file page 102, lines 19-21 — Transcript, file page 102, lines 19-21
- Official Supreme Court Transcript — file page 40, lines 29-23 — Transcript, file page 40, lines 29-23
- Official Supreme Court Transcript — file page 5, lines 25-23 — Transcript, file page 5, lines 25-23
- Official Supreme Court Transcript — file page 63, lines 21-11 — Transcript, file page 63, lines 21-11
- Official Supreme Court Transcript — file page 66, lines 37-17 — Transcript, file page 66, lines 37-17
What the justices asked
Justice Breyer asked why the shareholders' claim is distinct from the corporation's claim.
Chief Justice Roberts asked if the targeted class has a unique claim separate from the corporation.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 31-41 — Transcript, file page 10, lines 31-41
- Official Supreme Court Transcript — file page 11, lines 31-55 — Transcript, file page 11, lines 31-55
- Official Supreme Court Transcript — file page 13, lines 27-55 — Transcript, file page 13, lines 27-55
- Official Supreme Court Transcript — file page 14, lines 15-27 — Transcript, file page 14, lines 15-27
- Official Supreme Court Transcript — file page 14, lines 33-43 — Transcript, file page 14, lines 33-43
- Official Supreme Court Transcript — file page 14, lines 49-49 — Transcript, file page 14, lines 49-49
- Official Supreme Court Transcript — file page 15, lines 17-25 — Transcript, file page 15, lines 17-25
- Official Supreme Court Transcript — file page 15, lines 47-55 — Transcript, file page 15, lines 47-55
- Official Supreme Court Transcript — file page 17, lines 21-33 — Transcript, file page 17, lines 21-33
- Official Supreme Court Transcript — file page 66, lines 15-35 — Transcript, file page 66, lines 15-35
- Official Supreme Court Transcript — file page 67, lines 19-25 — Transcript, file page 67, lines 19-25
- Official Supreme Court Transcript — file page 67, lines 41-51 — Transcript, file page 67, lines 41-51
- Official Supreme Court Transcript — file page 68, lines 27-53 — Transcript, file page 68, lines 27-53
- Official Supreme Court Transcript — file page 69, lines 37-55 — Transcript, file page 69, lines 37-55
- Official Supreme Court Transcript — file page 7, lines 25-53 — Transcript, file page 7, lines 25-53
- Official Supreme Court Transcript — file page 71, lines 9-15 — Transcript, file page 71, lines 9-15
- Official Supreme Court Transcript — file page 72, lines 21-33 — Transcript, file page 72, lines 21-33
- Official Supreme Court Transcript — file page 72, lines 55-13 — Transcript, file page 72, lines 55-13
- Official Supreme Court Transcript — file page 73, lines 19-33 — Transcript, file page 73, lines 19-33
- Official Supreme Court Transcript — file page 74, lines 43-23 — Transcript, file page 74, lines 43-23
- Official Supreme Court Transcript — file page 74, lines 9-33 — Transcript, file page 74, lines 9-33
- Official Supreme Court Transcript — file page 75, lines 27-29 — Transcript, file page 75, lines 27-29
- Official Supreme Court Transcript — file page 8, lines 23-37 — Transcript, file page 8, lines 23-37
- Official Supreme Court Transcript — file page 9, lines 17-31 — Transcript, file page 9, lines 17-31
Why it matters
This case determines whether the government can restructure financial obligations of conservatorship entities. It defines the limits of shareholder rights during federal conservatorship. It impacts the stability of the housing finance system.
Official sources for this section
- Official Supreme Court Transcript — file page 102, lines 19-21 — Transcript, file page 102, lines 19-21
- Official Supreme Court Transcript — file page 40, lines 29-23 — Transcript, file page 40, lines 29-23
- Official Supreme Court Transcript — file page 5, lines 25-23 — Transcript, file page 5, lines 25-23
- Official Supreme Court Transcript — file page 63, lines 21-11 — Transcript, file page 63, lines 21-11
- Official Supreme Court Transcript — file page 66, lines 37-17 — Transcript, file page 66, lines 37-17
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 31-41 — Transcript, file page 10, lines 31-41
- Official Supreme Court Transcript — file page 11, lines 31-55 — Transcript, file page 11, lines 31-55
- Official Supreme Court Transcript — file page 13, lines 27-55 — Transcript, file page 13, lines 27-55
- Official Supreme Court Transcript — file page 14, lines 15-27 — Transcript, file page 14, lines 15-27
- Official Supreme Court Transcript — file page 14, lines 33-43 — Transcript, file page 14, lines 33-43
- Official Supreme Court Transcript — file page 14, lines 49-49 — Transcript, file page 14, lines 49-49
- Official Supreme Court Transcript — file page 15, lines 17-25 — Transcript, file page 15, lines 17-25
- Official Supreme Court Transcript — file page 15, lines 47-55 — Transcript, file page 15, lines 47-55
- Official Supreme Court Transcript — file page 17, lines 21-33 — Transcript, file page 17, lines 21-33
- Official Supreme Court Transcript — file page 5, lines 11-23 — Transcript, file page 5, lines 11-23
- Official Supreme Court Transcript — file page 66, lines 15-35 — Transcript, file page 66, lines 15-35
- Official Supreme Court Transcript — file page 67, lines 19-25 — Transcript, file page 67, lines 19-25
- Official Supreme Court Transcript — file page 67, lines 41-51 — Transcript, file page 67, lines 41-51
- Official Supreme Court Transcript — file page 68, lines 27-53 — Transcript, file page 68, lines 27-53
- Official Supreme Court Transcript — file page 69, lines 37-55 — Transcript, file page 69, lines 37-55
- Official Supreme Court Transcript — file page 7, lines 25-53 — Transcript, file page 7, lines 25-53
- Official Supreme Court Transcript — file page 71, lines 9-15 — Transcript, file page 71, lines 9-15
- Official Supreme Court Transcript — file page 72, lines 21-33 — Transcript, file page 72, lines 21-33
- Official Supreme Court Transcript — file page 72, lines 55-13 — Transcript, file page 72, lines 55-13
- Official Supreme Court Transcript — file page 73, lines 19-33 — Transcript, file page 73, lines 19-33
- Official Supreme Court Transcript — file page 74, lines 43-23 — Transcript, file page 74, lines 43-23
- Official Supreme Court Transcript — file page 74, lines 9-33 — Transcript, file page 74, lines 9-33
- Official Supreme Court Transcript — file page 75, lines 27-29 — Transcript, file page 75, lines 27-29
- Official Supreme Court Transcript — file page 76, lines 41-21 — Transcript, file page 76, lines 41-21
- Official Supreme Court Transcript — file page 8, lines 23-37 — Transcript, file page 8, lines 23-37
- Official Supreme Court Transcript — file page 9, lines 17-31 — Transcript, file page 9, lines 17-31
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Verified official opinions and orders
Title and summary sources
- Official Supreme Court Transcript — file page 102, lines 19-21 — Transcript, file page 102, lines 19-21
- Official Supreme Court Transcript — file page 40, lines 29-23 — Transcript, file page 40, lines 29-23
- Official Supreme Court Transcript — file page 5, lines 25-23 — Transcript, file page 5, lines 25-23
- Official Supreme Court Transcript — file page 63, lines 21-11 — Transcript, file page 63, lines 21-11
- Official Supreme Court Transcript — file page 66, lines 37-17 — Transcript, file page 66, lines 37-17
- Official Supreme Court Transcript — file page 102, lines 19-21 — Transcript, file page 102, lines 19-21
- Official Supreme Court Transcript — file page 40, lines 29-23 — Transcript, file page 40, lines 29-23
- Official Supreme Court Transcript — file page 5, lines 25-23 — Transcript, file page 5, lines 25-23
- Official Supreme Court Transcript — file page 63, lines 21-11 — Transcript, file page 63, lines 21-11
- Official Supreme Court Transcript — file page 66, lines 37-17 — Transcript, file page 66, lines 37-17
Revision history
- Revision 1 · Post Opinion ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Post Opinion ·
Correction: Migrated to the dated official Court activity contract without model use.