Hedge funds are pushing Congress to abandon plans to liquidate Fannie Mae and Freddie Mac as investors buy up preferred stock that has long been considered worthless.

The improving finances of the two government-owned mortgage companies have kindled hopes among shareholders that they could be revived as private firms.

"There are funds that have taken very large positions, large hedge funds, and they are lobbying heavily," Senator Bob Corker, R-Ten., "I don’t give investment advice, but I don’t see how these are going to be worth anything down the road."