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Fannie, Freddie Shareholders Urge Supreme Court to Find Conservator Unconstitutional
In a case with ramifications for the so-called administrative state, the Supreme Court considered Dec. 9 whether the structure of the Federal Housing Finance Agency is unconstitutional because Congress forbids the president from firing at will the person running it.
The case is potentially important because a decision finding the internal organization of the Federal Housing Finance Agency (FHFA) unconstitutional would trace out limits on the authority of administrative agencies created by Congress. Such a decision might also invalidate some actions the agency has taken.
The Supreme Court heard the case known as Collins v. Mnuchin, an appeal from the 5th Circuit Court of Appeals, telephonically. The respondent is U.S. Treasury Secretary Steven Mnuchin. Ninety minutes were allotted for oral argument, but Chief Justice John Roberts allowed the hearing to go on for 101 minutes. It was the court’s fi