GSE shareholders lost their latest battle against the government’s preferred stock purchase agreement as the U.S. Supreme Court declined to hear their case last week. After a lower court ruled against claims arguing the validity of the Treasury sweep of Fannie Mae and Freddie Mac profits, investors hoped to plead their case to the high court. Plaintiffs, including Fairholme Funds, Perry Capital and other shareholders, filed a writ of certiorari last year asking the Supreme Court to intervene in their cases. Both Perry and Fairholme have large holdings of the GSEs’ preferred shares. Back in 2014, a judge for the District of Columbia U.S. District Court dismissed claims brought against the government saying that the Housing and Economic Recovery Act of 2008 gives...