Collins v. Mnuchin

In wake of housing crisis, a new federal agency that “supervises” lenders Fannie Mae and Freddie Mac forces them to turn their profits over to the U.S. Treasury instead of investors. Fannie & Freddie investors: We want our money back! The whole agency is unconstitutional because it has a single director who can only be fired by the president “for cause.” And even if the agency is constitutional, the “profit sweep” regulation violates the statute. Fifth Circuit (per curiam, divided): The profit sweep rule is legal, but the agency is “unconstitutionally insulated from executive control.” Citing the Constitution’s “revolutionary” separation of powers design, “[t]he Framers were not tinkerers; they upended things.” Judge Willett, dissenting in part: The profit sweep rule is also unlawful.

Tags: 2018, Administrative Law, Fifth Circuit, Judge Willett, Removal, Separation of Powers, Treasury

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