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Fannie, Freddie Shareholders Urge Supreme Court to Find Conservator Unconstitutional

Fannie, Freddie Shareholders Urge Supreme Court to Find Conservator Unconstitutional
Fannie Mae and Freddie Mac headquarters. Karen Bleier/Paul J. Richards/AFP/Getty Images
Matthew Vadum
Matthew Vadum
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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.