31:
409:(CFPB) was called into question. Like FHFA, the CFPB was formed by legislation passed by Congress, and specified that it was to be overseen by a single Director that can only be removed from office "for cause" and did not give the option for the President to remove the person "at will". The Supreme Court agreed that this structure was unconstitutional as it violated the
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as to encourage home ownership, during the housing market peak in 2005 and 2006 and represented a large risk should they fail. At the start of the crisis, the rationalization of the number of these low-interest mortgages disrupted the banking system, causing some larger banks to go into bankruptcy or
395:
on the basis that these funds were needed to offset the taxpayers' costs of the government's intervention to resolve the crisis. The decision also prevents both GSEs from using
Treasury funds to pay their shareholders. Shareholders of both companies challenged the government's actions, stating that
455:
petitioned to the
Supreme Court in 2019 to hear the case; the shareholders sought to resolve the split in the Circuit Courts as well as to question whether any decisions – including the profit taking decision 2012 – made under the unconstitutional structure should be reversed, while the government
476:
and the CFPB, the inability for the
President to terminate the director of FHFA beyond "for cause" was unconstitutional. Related to the standing of the Fannie Mae and Freddie Mac shareholders, the Court was unanimous in that the FHFA's actions in taking over the GSEs was outlined by congressional
471:
The
Supreme Court issued its decision on June 23, 2021. It ruled on two areas which affirmed, reversed, and vacated the Fifth Circuit's decision in parts and remanded the case for further review. On the subject of the constitutionality of the FHFA director, the Court ruled 7–2 to uphold the Fifth
163:
1. The shareholders’ statutory claim must be dismissed. The "anti-injunction clause" of the
Recovery Act provides that unless review is specifically authorized by one of its provisions or is requested by the Director, "no court may take any action to restrain or affect the exercise of powers or
388:, the prior Director of OFHEO, named to the initial position. In September 2008, Lockhart issued an order to bring in Fannie Mae and Freddie Mac under FHFA's authority for the purposes of stabilizing both GSEs using funds allocated by Congress as a means to alleviate the mortgage crisis.
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between the executive and legislative branches. The
Supreme Court ruled that the Director position of CFPB must be also removable by will, but otherwise did not challenge the function of the CFPB since they had found its purpose to be
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360:(GSE) that purchase mortgages and backed almost half of the mortgages in the United States. Analysis had found that the two GSEs had purchased a number of risky mortgages, those offered at below the
326:, and secondly, dismissed the lawsuit brought against the FHFA by shareholders of Fannie Mae and Freddie Mac as the takeover of these firms was an established power of the agency under terms of the
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Patrick J. Collins, et al. v. Janet L. Yellen, Secretary of the
Treasury, et al.; Janet L. Yellen, Secretary of the Treasury, et al. v. Patrick J. Collins, et al.
1150:
477:
authority in the
Recovery Act of 2008, along with an "anti-injunction clause," and, thus, the lower courts should not have allowed their case to proceed.
250:
Alito, joined by
Roberts, Thomas, Kavanaugh, Barrett; Breyer, Kagan (all but Part III–B); Gorsuch (all but Part III–C); Sotomayor (Parts I, II, and III–C)
1562:
391:
As part of this takeover, once the mortgage crisis was subdued in 2012, the FHFA routed the ongoing profits earned by Fannie Mae and
Freddie Mac to the
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In a two-part decision, the Supreme Court ruled that the restriction on removal of the FHFA director by the President was unconstitutional in light of
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2. The Recovery Act’s restriction on the President’s power to remove the FHFA Director, 12 U.S.C. §4512(b)(2), is unconstitutional.
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in July of that year to try to stave off the effects of the recession. Among the law's goals included the formation of the
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seek means to avoid this, which disrupted the credit system and further exacerbated the crisis and caused a recession.
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wrote an opinion concurring in part and dissenting in part, related to the FHFA directorship, joined by Justice
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these decisions prevent the company from building capital and is excessive governmental overreach.
650:
976:
842:"White House to replace Federal Housing Finance Agency director following Supreme Court decision"
715:"Supreme Court leaves consumer regulator standing but backs president's ability to fire director"
657:
315:; the FHFA shares a similar structure as the CFPB. The case extends the legal challenge to the
311:(CFPB), with a single director who could only be removed from office "for cause", violated the
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wrote the majority opinion to which all Justices had joined in full or in part. Justices
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Mattingly, Phil; de Vogue, Ariane; Stracqualursi, Veronica (June 23, 2021).
813:"U.S. Supreme Court bolsters presidential power over housing finance agency"
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Kagan (in part and in the judgment), joined by Breyer, Sotomayor (Part II)
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524:, "with an appointee who reflects the Administration's values".
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issued in June 2020, the Supreme Court agreed to hear the case.
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challenged the Fifth Circuit's ruling. Following the ruling in
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444:, which ruled both on its initial three-judge panel and at an
617:"Credit and blame: A must-read on the origins of the crisis"
687:"Supreme Court Weighs U.S. Profit Sweep at Fannie, Freddie"
468:
Oral hearings for the case were held on December 9, 2020.
384:(OFHEO). The new FHFA was run by a single Director, with
301:(FHFA). The case follows on the Court's prior ruling in
164:
functions of the Agency as a conservator or a receiver."
1568:
United States Supreme Court cases of the Roberts Court
747:
Consumer Financial Protection Bureau v. Seila Law LLC
685:
Ackerman, Andrew; Kendall, Brent (December 9, 2020).
588:
Seila Law LLC v. Consumer Financial Protection Bureau
402:
Seila Law LLC v. Consumer Financial Protection Bureau
307:, which found that the establishing structure of the
304:
Seila Law LLC v. Consumer Financial Protection Bureau
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progressed through lower courts at the same time as
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418:from the implementation of the Director position.
1500:Axon Enterprise, Inc. v. Federal Trade Commission
1232:Springer v. Government of the Philippine Islands
399:As the case progressed, the Supreme Court heard
713:Mangan, Dan; Higgens, Tucker (June 29, 2020).
382:Office of Federal Housing Enterprise Oversight
340:Federal takeover of Fannie Mae and Freddie Mac
317:federal takeover of Fannie Mae and Freddie Mac
937:
516:moved forward with replacing FHFA director,
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448:hearing that the FHFB was unconstitutional.
119:Affirmed in part, reversed in part sub nom.
1578:United States separation of powers case law
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370:Housing and Economic Recovery Act of 2008
328:Housing and Economic Recovery Act of 2008
344:Part of the contributing factors to the
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297:case dealing with the structure of the
512:On the day of the decision, President
405:. In this case, the structure of the
18:2021 United States Supreme Court case
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1382:Humphrey's Executor v. United States
407:Consumer Financial Protection Bureau
309:Consumer Financial Protection Bureau
496:wrote concurring opinions. Justice
1049:FOMBPR v. Aurelius Investment, LLC
727:from the original on June 29, 2020
647:Tooltip Public Law (United States)
348:from 2007 to 2010 was the role of
36:Supreme Court of the United States
14:
1563:United States Supreme Court cases
1531:FEC v. NRA Political Victory Fund
953:United States Appointments Clause
882:___ (2021) is available from:
472:Circuit's decision that, as with
103:Collins v. Fed. Hous. Fin. Agency
358:government sponsored enterprises
29:
1492:Elgin v. Department of Treasury
1476:Thunder Basin Coal Co. v. Reich
520:, who had been appointed under
151:. granted, 141 S.Ct. 193 (2020)
1558:2021 in United States case law
1159:United States v. Arthrex, Inc.
374:Federal Housing Finance Agency
299:Federal Housing Finance Agency
1:
1484:Free Enterprise Fund v. PCAOB
1406:Free Enterprise Fund v. PCAOB
564:as Secretary of the Treasury.
378:Federal Housing Finance Board
376:(FHFA), merging the existing
293:, 594 U.S. ___ (2021), was a
1573:Appointments Clause case law
1017:Quackenbush v. United States
914:Supreme Court (slip opinion)
1315:McAllister v. United States
295:United States Supreme Court
282:Sotomayor, joined by Breyer
1594:
1339:Shurtleff v. United States
1224:Shoemaker v. United States
1189:Challenges to Appointments
905:Oyez (oral argument audio)
337:
1525:
1514:
1470:
1459:
1307:Crenshaw v. United States
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1119:United States v. Germaine
1068:United States v. Hartwell
985:United States v. Le Baron
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175:
162:
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1366:Parsons v. United States
1358:United States v. Perkins
1216:Appointments by Congress
1033:NLRB v. SW General, Inc.
993:Mimmack v. United States
534:Unitary executive theory
346:subprime mortgage crisis
1390:Wiener v. United States
1350:Limits on Removal Power
1331:Reagan v. United States
1143:Edmond v. United States
1135:Freytag v. Commissioner
1100:Burnap v. United States
1001:United States v. Corson
966:Appointment of Officers
692:The Wall Street Journal
43:Argued December 9, 2020
1465:Jurisdiction stripping
1374:Myers v. United States
1299:Blake v. United States
1256:Weiss v. United States
1197:Ryder v. United States
1084:United States v. Smith
1076:United States v. Mouat
1060:Officers vs. Employees
1041:Ortiz v. United States
1025:United States v. Smith
1009:United States v. Eaton
432:had been heard in the
1323:Keim v. United States
386:James B. Lockhart III
45:Decided June 23, 2021
1178:NLRB v. Noel Canning
796:938 F.3d 553
774:896 F.3d 640
752:923 F.3d 680
623:. September 11, 2008
552:The case was titled
411:separation of powers
368:Congress passed the
313:separation of powers
1433:Removal by Congress
1280:Removal of Officers
1170:Recess Appointments
1092:Auffmordt v. Hedden
393:Treasury Department
362:prime interest rate
977:Marbury v. Madison
791:Collins v. Mnuchin
769:Collins v. Mnuchin
554:Collins v. Mnuchin
186:Associate Justices
121:Collins v. Mnuchin
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1422:Collins v. Yellen
1414:Selia Law v. CFPB
1398:Morrison v. Olson
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1111:Inferior Officers
872:Collins v. Yellen
440:was heard in the
290:Collins v. Yellen
286:
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266:Gorsuch (in part)
234:Amy Coney Barrett
24:Collins v. Yellen
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1441:Bowsher v. Synar
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1240:Buckley v. Valeo
1127:Ex parte Siebold
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821:. June 23, 2021
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486:Clarence Thomas
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1248:MWAA v. CAAN
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1222:
1205:Carr v. Saul
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338:See also:
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446:en banc
438:Collins
426:Collins
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