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Biden will fire FHFA’s Calabria after Supreme Court ruling

WASHINGTON— President Joe Biden will move immediately to replace Federal Housing Finance Agency Director Mark Calabria, following a Supreme Court ruling issued Wednesday that determined the leadership structure of the agency is unconstitutional.

In a split decision, the high court ruled that a provision in the 2008 law establishing the FHFA, which said a president can only fire the director for cause, was unconstitutional. That decision paved the way for the Biden administration to oust Calabria, who was appointed by former President Donald Trump.

“In light of the Supreme Court’s decision today, the President is moving forward today to replace the current director with an appointee who reflects the administration’s values,” a White House official says. Calabria, an appointee of former President Donald Trump, has been heading the agency since April 2019.

Bloomberg

Calabria, a liberatarian economist, has been heading the agency since April 2019.

“In light of the Supreme Court’s decision today, the President is moving forward today to replace the current director with an appointee who reflects the administration’s values,” a White House official confirmed, adding that “it is critical that the agency implement the administration’s housing policies.”

In a split decision written by Justice Samuel Alito, with several of the other justices concurring and dissenting on several components of the case, the court also dismissed a claim brought by shareholders of Fannie Mae and Freddie Mac, who argued that a 2012 profit sweep agreement between the FHFA and the U.S. Treasury violates the law.

The plaintiffs had also argued that the provision in the 2008 law establishing the FHFA, which said a president can only fire the director for cause, was unconstitutional. While the court left in place the so-called net worth sweep in Wednesday’s opinion, the justices agreed that a sitting president should have the ability to fire the FHFA director at will. Previously, a president had only been able to fire the director “for cause.”



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