Argument analysis: “Very hard questions” in dispute over Fannie Mae, Freddie Mac shareholder suit

Claud Mccoid

The Supreme Court read oral argument on Wednesday in a high-stakes struggle more than the regulation of house loan giants Fannie Mae and Freddie Mac in the wake of the 2008 housing crisis. Shareholders in the company have challenged the two the constitutionality of the Federal Housing Finance Agency, which Congress created to oversee the two companies, and the FHFA’s 2012 agreement with the Treasury Office, which the shareholders say “nationalized” Fannie and Freddie. Right after almost two several hours of debate, the justices did not appear inclined to strike down the agreement on the ground that the limits on the president’s capacity to get rid of the FHFA director violate the Structure. The justices appeared somewhat additional receptive to the shareholders’ declare that the FHFA and the Treasury Office did not have the authority to enter into the 2012 agreement, but they used rather small time on that issue, … Read More