Federal takeover of Fannie Mae and Freddie Mac: Difference between revisions

{{main|Collins v. Mnuchin}}

Shareholders of Fannie Mae and Freddie Mac have challenged the Net Worth Profit taking by the government in part by challenging the structure of the FHFA. They argued that the FHFA as established by Congress has a Director that can only be removed "for cause" and not "at will". The [[United States Court of Appeals for the Fifth Circuit|Fifth Circuit Court of Appeals]] sided with the shareholders both on its initial hearing and in an ''en banc'' review. Both sides of the case petitioned to the Supreme Court to review case; during this time, the Court ruled in ''[[Seila Law LLC v. Consumer Financial Protection Bureau]]'', 591 U.S. ___ (2020), that the [[Consumer Financial Protection Bureau]], another Congress-established agency with a Director that could only be removed "for cause" was unconstitutional. Subsequently, the Court certified the petition for FHFA case to review its structure as well as if the profit taking decision and other orders should be reversed should the Director position be considered unconstitutional. The Court heard oral arguments to this case on December 9, 2020.<ref>{{cite web | url = https://www.wsj.com/amp/articles/supreme-court-weighs-u-s-profit-sweep-at-fannie-freddie-11607522400 | title = Supreme Court Weighs U.S. Profit Sweep at Fannie, Freddie | first1 = Andrew | last1 = Ackerman | first2 = Brent | last2 = Kendall | date = December 9, 2020 | access-date = December 9, 2020 | work = [[The Wall Street Journal]] }}</ref>

 

==See also==