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It would probably be best for the Treasury to exercise the Warrants prior to the capital raise. But I'm sure the GSEs will be able to raise capital regardless
Nope, that's incorrect. This is directly from the newest Collins' SCOTUS filing:
Many of our friends realize the Jr. Preferreds will become Commons via a generous Conversion assuming Commons are going to have future value.
I listened to both oral arguments and that would be sweet Justice!
The fallacy here is acting like Treasury exercising the warrants is either theft or expropriation. It is neither,
Fantastic Guido! When our federal government is allowed to expropriate the property of others it's bad news for ALL AMERICANS!
Well said! If you look at the strong arm takeover of the Board of Directors by the Fed on September 06, 2008, IT HAD MORE TO DO WITH THE GOVERNMENT WANTING TO CALM A FINANCIALLY PANICKED MARKET THAN WHETHER OR NOT THE GSES ACTUALLY NEEDED IT! Then in 2012, the politicians realized that Nationalization of private corporations is basically free money to spend without getting the US CONGRESS involved in the Appropriations Process as required by the US Constitution! The SCOTUS can straighten this out, let's see what they do!
What kind of skin in the game if any does Josh have? Appreciate the great work on finding these Tweets!
Inflation has been anemic for over a decade! Costs for medical, education, and housing have generally outpaced other measures. No question many retirees on a fixed income have lost purchasing power for keeping funds in risk free deposits, BUT I think the Federal Reserve's biggest fear is Deflation, with all of its negative implications.
Jerome Powell in his latest speech said that he welcomes overshooting the 2% annual inflation goal and that they will wait to see how transitory the current inflation picture is.
If you purchase a 10 year German Bund today, after 10 years you WILL HAVE LESS THAN YOU GAVE THE GERMAN GUBMINT! The yield is currently NEGATIVE 0.24%, some people think it's crazy to PAY a government to hold your money.
Generally, the Federal Reserve gives less weight to food and energy prices as they tend to be pretty volatile.
So what good are inflation predictions?
MCLEAN, Va., June 09, 2021 (GLOBE NEWSWIRE) -- The Freddie Mac (OTCQB: FMCC) Multifamily Apartment Investment Market Index® (AIMI®) held steady in Q1 2021 as growing net operating incomes (NOIs) and low interest rates bolstered the investment environment for multifamily properties. Overall, the index is down by 0.1% after two consecutive quarters of growth, with the majority of markets in positive territory.
“The low rate environment and reliable net operating incomes are propelling the market forward,” said Steve Guggenmos, vice president of Freddie Mac Multifamily Research & Modeling. “With a healthy level of demand and enthusiasm around the reliable asset class, growing property values continue to be the limiting factor in the index.”
Over the quarter, AIMI declined by 0.1% in the nation with mixed results at the market level. Thirteen markets experienced quarterly growth while 11 metros experienced quarterly contraction. One market (Chicago) did not experience growth or contraction.
NOI growth was generally positive across markets. The nation and 18 markets experienced quarterly NOI growth while NOI contracted in seven markets. NOI grew the fastest in Tampa and Phoenix at 3.1% and 2.7%, respectively.
Property prices grew in the nation and in 22 of the 25 markets. New York and San Francisco continued to see declines, at -2.2% and -1.1% over the quarter, respectively, while prices in Los Angeles contracted very slightly (-0.1%).
Mortgage rates decreased by 6 bps.
Over the year, AIMI increased in the nation and in 15 markets, while 10 markets experienced an AIMI drop.
NOI decreased in the nation and in 15 markets. Like last quarter, New York and San Francisco posted double-digit NOI declines (-16.5% and -21.7%, respectively), which is very rare for any market on an annual basis. Ten markets posted annual NOI gains.
The nation and 16 markets experienced property price growth, while eight metros experienced contraction. Chicago was the only metro with no property price growth or contraction over the year.
Mortgage rates decreased by 42 bps. This is a large drop, but not as severe as the annual rate drop in each of the last six quarters.
In addition to national and local values, a sensitivity table is available that captures how the index value adjusts based on changes in certain underlying variables. Additional information about AIMI is on the Freddie Mac Multifamily website, including FAQs and a video.
AIMI is an analytical tool that combines multifamily rental income growth, property price growth and mortgage rates to provide a single Index that measures multifamily market investment conditions. A rise in AIMI from one quarter to the next implies an increasingly favorable environment for multifamily investment opportunities, while a decline suggests that attractive investment opportunities are becoming more difficult to find compared with the prior period.
Freddie Mac Multifamily helps ensure an ample supply of affordable rental housing by purchasing and securitizing mortgages on apartment buildings nationwide. Roughly 90% of the mortgages purchased support rental units for households earning 120% of area median income or below. Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACTS:
Erin Mancini
(703) 903-1530
Erin_Mancini@FreddieMac.com
I think it will be later too, but I bet I know of at least one skeptical "free lottery ticket" holder who will be rearranging his scheduled activities to make sure he is near his computer tomorrow at 10am! Why would he do that, when he could be performing other community caretaker functions like picking up debris on the side of the highway? HeeHeee!
So let's speculate shall we? What happens if the SCOTUS says, "HaHa, no courts can provide any relief because of the anti-injunction or Succession clauses, go write a letter to your Congress person!". You are going to be hitting the sell button aren't you?
I think the SCOTUS understands what exactly is going on here. Alot of Judges in the lower courts have had a hard time granting remedial relief under the legal reasoning that since the FHFA Director was unconstitionally insulated the nws is invalid. The fact that the nws is an ultra vires act and under the APA should be void seems an easier lift. Looking forward to the eventual release of their opinion, could be as early as tomorrow.
HousingWire Daily Nationwide’s David Berson on the latest home sales report
Latest Podcast https://www.housingwire.com/
David Berson was the Chief Economist at Fannie Mae for 20 years, he left in 2008. When asked if we are in a housing bubble he said "Definitely not!"
I'm not really sure about the limits of Congress's ability to try to influence, intimidate, and attempt to control the Judiciary Branch. Maybe a coincidence, but right this second the SCOTUS could theoretically be OVERTURNING Humphreys Executor, a decision many observers have said was influenced by FDR's court packing threat.
Could the Congress reduce the Justices salary to $1 if they don't like one or more of their opinions? Is there a sharp line of exactly what the Congress can and can't do and has it been tested in the roughly 250 years of American Democracy?
I thought Barr always exerted some independence from DJT and that pissed the POTUS off, but how insulated is DOJ from the Congress?
It would be funny if the US Marshal Service told the US Senators to go pound sand! Kind of fun to watch the 3 separate branches of gubmint fight each other for more power over each other:
https://amp.usatoday.com/amp/7593347002
You might enjoy one or more of these articles:
https://www.bloomberg.com/news/articles/2021-06-08/transcript-ali-wolf-on-just-how-wild-the-u-s-housing-market-might-get
For GB: https://amp.miamiherald.com/news/business/real-estate-news/article251955788.html
https://www.city-journal.org/maxine-waters-down-payment-proposal-wont-solve-housing-crisis
Who if anyone is regulating these guys? https://finance.yahoo.com/news/uwm-holdings-corporation-announces-contest-132900634.html
https://www.tcpalm.com/story/news/2021/06/07/treasure-coast-housing-market-how-did-get-where-today/7518959002/
https://www.ktvb.com/amp/article/news/local/growing-idaho/ketchum-leaders-back-away-from-tent-city-option-vow-more-work-on-affordable-housing-crisis/277-7070b666-44db-4e64-b66b-e82099a656e1
https://amp.statesman.com/amp/7574180002
MC Kowtowing to JB? https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-multifamily-announces-social-bonds-deal-supporting?_ga=2.51942121.1571961053.1623016264-422910918.1606962161
MCLEAN, Va., June 08, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) Multifamily today announced the issuance of $230 million in Social Bonds supporting 1,267 rental homes across 39 states and the District of Columbia for individuals with intellectual and developmental disabilities. The proceeds from these Social Bonds help address the significant shortage of community-based homes critical to the “deinstitutionalization” of care for individuals with disabilities. The properties provide 4,462 beds, approximately 90% being affordable to people with very low incomes making 50% of the area median income and allow individuals with disabilities to live and work in their communities.
“Freddie Mac Multifamily is incredibly proud to announce our first Social Bonds transaction to provide housing for individuals with intellectual and developmental disabilities,” said Robert Koontz, senior vice president of Capital Markets for Freddie Mac Multifamily. “This transaction represents our commitment to ensuring safe, affordable housing that meets the needs of the community it serves. Our Impact Bonds, and specifically the Social Bonds framework, encourage innovation to provide solutions that meet the unique needs of underserved communities.”
This Social Bonds structured transaction is a REMIC – FHMR 2021-P009- issuance backed by a pool of Multifamily PCs.
According to the company’s Social Bonds Framework, the proceeds of Freddie Mac’s Social Bonds are used either to provide liquidity to social impact financial institutions for financing of affordable housing or to finance multifamily properties originated by the Freddie Mac Multifamily Optigo® network that are affordable to an underserved population. Institutions receiving liquidity and properties financed from Social Bonds proceeds are expected to foster various socioeconomic opportunities for residents and their communities, in addition to providing affordable housing to low- to moderate-income families.
Read more about Freddie Mac Multifamily’s Social Bonds here.
Freddie Mac Multifamily is the nation's multifamily housing finance leader. Historically, more than 90% of the eligible rental units we fund are affordable to families with low-to-moderate incomes earning up to 120% of area median income. Freddie Mac securitizes about 90% of the multifamily loans it purchases, thus transferring the majority of the expected credit risk from taxpayers to private investors.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
MEDIA CONTACT: Erin Mancini
(703) 903-1530
Erin_Mancini@FreddieMac.com
If he's an attorney and I think he is, his communications are protected by the attorney client privilege unless the Plaintiffs in the legal proceedings can pierce the privilege which is extremely difficult. The Plaintiffs after years of Discovery Documents should have plenty of smoking guns, as we have already seen, and I think Judge Lamberth is ready to move forward with the case in his courtroom.
It seems that the UST from the publicly available documents was calling all the shots and the FHFA in a spineless way and likely blessed by Alfred Pollard (who was a tool of the tbtf banks) instead of being independent and following their mandate under HERA to preserve and conserve their wards assets, simple rubber stamped UST'S Nationalization.
Given the benefit of time and the proliferation of already available smoking gun documents, all can see what happened here and it's quite incredulous that this theft of shareholder value took place in broad daylight and continues to this day as an increase in the LP.
I think the SCOTUS gets it, let's see if they do anything about it.
That was last Summer! https://www.supremecourt.gov/
Relax, the twins are retaining earnings and typically Justice prevails in the end. I'm pretty sure that Justice Thomas and Gorsuch are trying to convince some of the other Justices that Humphreys Executor is bad law and needs to be overturned, so it may take awhile. On the other hand, they give the Collins Plaintiffs the remedy they seek with the APA Claim.
A tell tale sign would be if he decides to retire to a country without an extradition treaty with the United States. Of course he'll continue receiving his juicy monthly retirement benefits paid for by the private company shareholders!
"When Sen. Chuck Grassley asked aloud how it was that the company and its shareholders were not yet square with the government, the Treasury Department testily answered, in essence, that the bailout had not been a loan, but an investment.
This was not a debt that could be paid back. Like a restaurant owner who borrows money from a mobster, the GSEs found themselves in an unseverable relationship.
Remember, the other bailout recipients after 2008 were mostly all allowed to pay off their debts as quickly as possible, to get out from under restrictions imposed upon them by the government. Firms that took bailout money were allowed to pay far earlier than expected, in less than a year in some cases, allowing companies like JP Morgan Chase, Goldman Sachs and Morgan Stanley to get out from under executive compensation restrictions and other temporary reforms."
WHERE WAS THE WALL STREET JOURNAL, BARRONS, BLOOMBERG, ET. AL., WITH THIS STORY? I think Bill Ackman quipped one time that he was disappointed with the WSJ's failure to communicate this story.
Judge Lamberth is ready to go forward with a trial after years and years of delays and preliminary motions (and that ugly Mario Ugoletti incident). Collins may or may not moot some or all of the issues in his court. Here's what happens at a Scheduling Conference:
Scheduling Conference
The Scheduling Conference will be conducted pursuant to Fed. R. Civ. P. 16 and Fed. R. Bankr.
P. 7016. At the Scheduling Conference, the parties shall be prepared to discuss all aspects of
the Adversary Proceeding and the Joint Report including, among other things:
a. formulating and simplifying the issues, and eliminating frivolous claims
and defenses;
b. amending the pleadings if necessary or desirable;
c. obtaining admissions and stipulations about facts;
d. avoiding unnecessary proof and cumulative evidence;
e. determining the appropriateness and timing of summary adjudication
under Fed. R. Civ. P. 56;
f. controlling and scheduling discovery;
g. identifying witnesses and documents, scheduling the filing and exchange
of any pretrial briefs, and setting dates for further conferences and for
trial;
h. settlement and using special procedures for managing potentially difficult
or complex issues;
i. disposing of pending motions;
j. finalizing the content of the Scheduling Order; and
k. facilitating in other ways the just, speedy, and inexpensive disposition of
the case.
Counsel and the parties should also bring their calendars and be prepared to advise the Court as
to the preferred dates for further pre-trial conferences and the trial.
Typically, a trial date will be set at the Scheduling Conference along with all other case
deadlines. After the Scheduling Conference, the Court will issue a “Scheduling Order Under
Fed. R. Civ. P. 16(b) and Fed. R. Bankr. P. 7016.”
Any idea if Alfred Pollard retiring has anything to do with the 65,000 documents? I wonder what type of culpability if any Mr. Pollard has, he was a bank lobbyist prior to his work at OFHEO. OH THE PLOT SICKENS, I MEAN THICKENS....
Can this saga get anymore dramatic? Stay tuned my friends!
How could he have POSSIBLY THOUGHT THAT A CONSERVATOR CAN SIGN OFF ON A LEGAL AGREEMENT TO GIVE AWAY ITS WARDS PROFITS INTO PERPETUITY?
WSJ today: "The Securities and Exchange Commission on Friday bowed to progressives and fired Public Company Accounting Oversight Board chairman William Duhnke. Note how the left has suddenly warmed to the originalist separation-of-powers views of Supreme Court Justice Brett Kavanaugh.
Liberals fretted that both High Court decisions would result in the politicization of the supposedly independent agencies. Yet President Biden took advantage of the Seila Law decision to fire Trump appointee Kathleen Kraninger from the consumer bureau. And what do you know?
Progressives also urged Mr. Biden's new SEC Chairman Gary Gensler to take advantage of the Court's Free Enterprise Fund ruling to sack Mr. Duhnke. Sens. Elizabeth Warren and Bernie Sanders wrote a letter last month to Mr. Gensler complaining that Mr. Duhnke has defanged the watchdog and sidelined "investor advocates" -- that is, progressive lobbyists.
They want the PCAOB to sic auditors on public companies to enforce the left's climate and social agenda. Mr. Gensler dutifully saluted. This is a signal of the political direction of the Gensler SEC, and he should be accountable.
Consumer Perception of Homebuying Conditions Worsens as Affordability and Supply Issues Persist
June 7, 2021
Only 35 Percent of Consumers Believe It’s a Good Time to Buy a Home, Despite Improved Sense of Household Finances
WASHINGTON, DC – The Fannie Mae (FNMA/OTCQB) Home Purchase Sentiment Index® (HPSI) remained relatively flat in May, increasing by 1.0 points to 80.0. Four of the HPSI’s six components increased month over month, most notably the components related to personal finance, as consumers reported a much greater sense of job security and improved household income compared to the same time last year. However, for the second consecutive month, consumers also reported a significantly more pessimistic view of homebuying conditions; on net, that component fell to an all-time survey low, with only 35% of respondents believing it’s a good time to buy a home, down from 53% in March. Year over year, the HPSI is up 12.5 points.
“The HPSI remained relatively flat in May, although some of its underlying components shifted significantly, with consumers feeling substantially more positive about their jobs and income, while at the same time showing even greater pessimism about homebuying conditions compared to last month,” said Doug Duncan, Senior Vice President and Chief Economist. “The ‘good time to buy’ component fell further -- hitting another all-time survey low – as consumers appear to be acutely aware of higher home prices and the low supply of homes, the two reasons cited most frequently for that particular sentiment. However, despite the challenging buying conditions, consumers do appear more intent to purchase on their next move, a preference that may be supported by the expectation of continued low mortgage rates, as well as the elevated savings rate during the pandemic, which may have allowed many to afford a down payment.”
Home Purchase Sentiment Index – Component Highlights
Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased in May by 1.0 points to 80.0. The HPSI is up 12.5 points compared to the same time last year. Read the full research report for additional information.
Good/Bad Time to Buy: The percentage of respondents who say it is a good time to buy a home decreased from 47% to 35%, while the percentage who say it is a bad time to buy increased from 48% to 56%. As a result, the net share of those who say it is a good time to buy decreased 20 percentage points month over month.
Good/Bad Time to Sell: The percentage of respondents who say it is a good time to sell a home remained unchanged at 67%, while the percentage who say it’s a bad time to sell decreased from 26% to 25%. As a result, the net share of those who say it is a good time to sell increased 1 percentage point month over month.
Home Price Expectations: The percentage of respondents who say home prices will go up in the next 12 months decreased from 49% to 47%, while the percentage who say home prices will go down remained unchanged at 17%. The share who think home prices will stay the same increased from 27% to 29%. As a result, the net share of Americans who say home prices will go up decreased 2 percentage points month over month.
Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months decreased from 7% to 6%, while the percentage who expect mortgage rates to go up decreased from 54% to 49%. The share who think mortgage rates will stay the same increased from 33% to 38%. As a result, the net share of Americans who say mortgage rates will go down over the next 12 months increased 4 percentage points month over month.
Job Concerns: The percentage of respondents who say they are not concerned about losing their job in the next 12 months increased from 80% to 87%, while the percentage who say they are concerned decreased from 16% to 12%. As a result, the net share of Americans who say they are not concerned about losing their job increased 11 percentage points month over month.
Household Income: The percentage of respondents who say their household income is significantly higher than it was 12 months ago increased from 21% to 29%, while the percentage who say their household income is significantly lower decreased from 17% to 13%. The percentage who say their household income is about the same decreased from 57% to 54%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago increased 12 percentage points month over month.
About Fannie Mae’s Home Purchase Sentiment Index
The Home Purchase Sentiment Index (HPSI) distills information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey® (NHS) into a single number. The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision making. The HPSI is constructed from answers to six NHS questions that solicit consumers’ evaluations of housing market conditions and address topics that are related to their home purchase decisions. The questions ask consumers whether they think that it is a good or bad time to buy or to sell a house, what direction they expect home prices and mortgage interest rates to move, how concerned they are about losing their jobs, and whether their incomes are higher than they were a year earlier.
About Fannie Mae’s National Housing Survey
The most detailed consumer attitudinal survey of its kind, Fannie Mae’s National Housing Survey (NHS) polled approximately 1,000 respondents via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts, six of which are used to construct the HPSI (findings are compared with the same survey conducted monthly beginning June 2010). For more information, please see the Technical Notes. Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to support the housing market. The May 2021 National Housing Survey was conducted between May 1, 2021 and May 25, 2021. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by PSB, in coordination with Fannie Mae.
Detailed HPSI & NHS Findings
For detailed findings from the May 2021 Home Purchase Sentiment Index and National Housing Survey, as well as a brief HPSI overview and detailed white paper, technical notes on the NHS methodology, and questions asked of respondents associated with each monthly indicator, please visit the Surveys page on fanniemae.com. Also available on the site are in-depth special topic studies, which provide a detailed assessment of combined data results from three monthly studies of NHS results.
To receive e-mail updates with other housing market research from Fannie Mae's Economic & Strategic Research Group, please click here.
About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog
Media Contact
Matthew Classick
202-752-3662
Fannie Mae Newsroom
https://www.fanniemae.com/news
We'll see if the SCOTUS rules that the FHFA "may do whatever is in its best interests" and if that includes sweeping all their wards profits into the UST. Maybe in less than 20 minutes.
Here's one you may enjoy from the PLF Amicus Brief: "More
than 450 federal agencies churn out “‘reams of
regulations’” that “dwarf the statutes enacted by
Congress” while enjoying limited oversight from Congress, the President, and the courts. Kisor v.
Wilkie, 139 S. Ct. at 2446–47 (Gorsuch, J., concurring
in judgment).
This combination of “expert knowledge and
consolidated power … hark[s] back to the medieval
monarchical vision of a wise ruler, who knows what is
best for his people, and who therefore must have the
full range of unspecialized power to impose justice.”
Philip Hamburger, Is Administrative Law Unlawful?
344 (2014). While “[o]ne can have a government …
that benefits from expertise without being ruled by
experts[,]” Free Enterprise Fund, 561 U.S. at 499,
continuing to rely on Humphrey’s Executor to bolster
the very existence of independent agencies “creates a
serious, ongoing threat to our Government’s design”
that “subverts political accountability and threatens
individual liberty.” Seila Law, 140 U.S. at 2219
(Thomas, J., concurring in part and dissenting in
part).
II.
THIS COURT SHOULD SET
ASIDE THE NET WORTH SWEEP
The only proper remedy for the constitutional
violations in this case is to vacate the Net Worth
Sweep. The Fifth Circuit’s remedy—effectively blue-
penciling the statute to make the FHFA’s director
removable at will by the President—is inconsistent
with the text of the Administrative Procedure Act and
with the nature of judicial power under the
Constitution. The Fifth Circuit left the shareholders
in the peculiar position of winning their case, but not
securing any relief.
The case AGAINST Humphreys Executor, according to the PLF: "Since the ruling in Humphrey’s
Executor, however, it has become less clear where the
buck stops. Congress has shifted legislative,
executive, and judicial power to “independent”
agencies and attempted to insulate agency officials
from presidential control with tenure protections and
other means. The resulting concentration of power—
“the very definition of tyranny,” according to James
Madison, The Federalist No. 47, at 324 (J. Cooke ed.
1961)—without accountability to the President or the
people, blurs the lines of responsibility and “pos[es] a
significant threat to individual liberty and to the
constitutional system of separation of powers and
checks and balances.” PHH Corp. v. CFPB, 881 F.3d
75, 165 (D.C. Cir. 2018) (Kavanaugh, J., dissenting).
The Court’s ruling in Humphrey’s Executor partially
blessed this approach, leading to a “more pragmatic”
and “flexible” view of the separation of powers when it
is “convenient to permit the powers to be mixed.” Perez
v. Mortgage Bankers Ass’n, 575 U.S. 92, 115–16 (2015)
(Thomas, J., concurring in judgment). The resulting
“headless fourth branch of government” leaves the people with no meaningful way to hold government
responsible for its actions. City of Arlington, 569 U.S.
at 313–14 (Roberts, C.J., dissenting).
Thus, the “constitutional strategy is straight-
forward ….” Seila Law, 140 S. Ct. at 2203. It divides
power “everywhere except for the Presidency, and
render[s] the President directly accountable to the
people through regular elections.” Id. And while some
executive officials “will still wield significant
authority” that authority is overseen by the elected
President. Id. But the FHFA upends the
constitutional strategy. This Court should hold, like
Seila Law just last term, that the FHFA director may
not be insulated from presidential control with tenure
protections.
B. The Court Should Overturn Humphrey’s
Executor to Ensure Agencies Are Not
Insulated from Presidential Control.
Between the Court’s rulings in Myers in 1926 and
Humphrey’s Executor in 1935, Congress did not create
any agencies insulated from presidential control.
Although Congress set up several commissions that
bear the hallmark of an “independent” agency (e.g.,
multi-headed, staggered-term, bipartisan
commissions such as the Federal Radio Commission,
the Federal Power Commission, the Securities and
Exchange Commission, the National Labor Relations
Board, and the Bituminous Coal Commission), all
were subject to removal by the President. This Court’s
ruling in Humphrey’s Executor in 1935 paved the way
for Congress to create scores of agencies within the
Executive Branch unshackled from presidential
control.
There's more if interested here: https://pacificlegal.org/wp-content/uploads/2020/09/Collins-v.-Mnuchin-AC-Brief.pdf
Will the SCOTUS use Collins as a means to finally put a dent in our renegade 4th Branch of government? Dunno. From the PLF Amicus Brief: "The Court made clear in Seila Law that Humphrey’s is inconsistent with the original meaning of the Constitution, out of step with
this Court’s other cases, and based on false premises.
See 140 S. Ct. at 2206; id. at 2217 (Thomas, J.,
concurring in part and dissenting in part). Yet in Seila
Law, the Court declined to overturn Humphrey’s
because, unlike in this case, no party asked it to. Id.
at 2206. This case presents the Court with an
opportunity to correct a mistake that has been on the
books for over eight decades. The Court should take
that opportunity."
I've said it a million times, BOTH PARTIES ARE EQUAL OPPORTUNITY HATERS OF THE GSES! The R's think it's horrible that da gubmint is involved in private lending (but let's ignore the race to the bottom in both loan pricing and quality we just saw from the PLS causing the GFC!) And the D's think that they should be a part of the federal government so they can be utilized more effectively for their low and moderate income housing aspirations! And here we are! The funniest part is that FDR created them and LBJ privatized them. It worked brilliantly for close to 5 decades until the private sector started issuing garbage PLS.
One thing that is reassuring is to think of ALL the powerful people in the government who have attempted to kill the twins! So far NONE have succeded and why? Because March 2020 showed they are needed as a buyer of last resort as investors run to the hills at the slightest whiff of trouble ahead. I don't think they are going away anytime soon and MC in that article said that there is a role for them to play. The SCOTUS ruling should be interesting.
Although written some time ago, it's very prescient. Who knew he would be the ACCOUNTABLE TO NO ONE CZAR OVER THE GSES!. This drama, the "Salt the Earth with their carcasses", the blatant Nationalization of two private corporations in broad daylight, the transfer of hundreds of billions of dollars to the UST, the continued resistance of the federal government to come to terms over their bad acts, IS THE MOST BIZARRE THING I HAVE EVER SEEN! I think the SCOTUS may have something to say about it. Stay tuned!
David H. Thompson: Well, just to say that I think these cases are significant. This is, as I mentioned, the largest expropriation of value in U.S. history that I know of. And so, it's really important for the rule of law, and I think for our capital markets and just private property, that this not be allowed to stand. And I remain confident that the courts will invalidate the net worth sweep.
That was David on August 24th, 2018 in an update on the Collins case after the 3 Judge panel decision and prior to the EnBanc Panel ruling in September 2019
https://fedsoc.org/events/litigation-update-collins-v-fhfa
The government abandoned defending whether or not a single head of a federal agency that is not financed through the Congressional Appropriations Process, with a 5 year term, not fireable at will, is Constitutional. A decision made by the DJT Administration last year. Maybe the DJT Administration wanted to make it easier for the SCOTUS to overrule Humphreys Executor and increase his power under the Unitary Executive Principle, which would be a big win for the Federalist Society. We may never know exactly why.
But DOJ and the UST was still advocating for no retrospective relief for the Collins Plaintiffs as well as trying to cut them off with the anti-injunction and Succession clauses and of course defending the net worth swipe. Hashim Moopan (who actually clerked for Scalia) quit when JB came in and is now working for a blue chip law firm in downtown DC called Jones Day https://www.jonesday.com/en/news/2021/06/hashim-mooppan-returns-to-jones-day-as-partner-in-issues--appeals-practice-in-washington
If the SCOTUS overrules Humphreys Executor, he's probably going to like that because even though he has defended the nws all these years for the government, he is a member of the Federalist Society and likely adheres personally to their viewpoints. https://fedsoc.org/contributors/hashim-mooppan. This is why he left when JB came in.
It's kind of like a chess game, where by appealing to the SCOTUS, David Thompson has been slowly eliminating the governments arguments for defending their Nationalization of two large private corporations.
Never really thought about it much, I have owned shares for decades and will likely continue to do so and in the end Uncle Suggy is going to get over half of it anyway! Although I may end up giving it away, 1/3 Science Education, 1/3 Medical Science, and of course some to the Pacific Legal Foundation, so other Americans hopefully WON'T HAVE TO LIVE IN THE FUTURE WITH BANANA REPUBLIC LIKE BEHAVIOR FROM OUR GOVERNMENT AND THE SUBSEQUENT INTERFERENCE WITH THEIR FREEDOMS!
Seems like the stock price will be higher. I have some dry powder ready because if the ruling is unfavorable for shareholders, I will probably buy more and of course I will probably buy some if it's favorable!
Let's see what happens with the SCOTUS ruling first and then start guessing where the sp will end up, but there is no question that eliminating the net worth swipe will help the enterprises build 1st loss capital, so they can rebuild their balance sheets, WHICH IS WHAT THE "CONSERVATOR" SHOULD HAVE BEEN DOING FOR THE LAST 12.5+ YEARS!
I was always surprised that BO allegedly avoided the historically corrupt Chicago political machinery. I guess when you graduate #1 from Harvard Law School and you decide to rob a bank, you do it through something called a Net Worth Sweep!
FDR graduated from Harvard Law as well, I would have replied earlier but I had to go down to the wax museum and.....https://www.reddit.com/r/KingOfTheHill/comments/acio6o/sorry_im_late_i_had_to_stop_at_the_wax_museum_and/
I think they are BOTH SIMILAR in that the SCOTUS MUST decide whether the provision that was found Unconstitutional in California v Texas IS severable from the rest of the ACA or should THE ENTIRE ACA BE FOUND UNCONSTITUTIONAL! IN COLLINS THE ISSUE IS WHETHER THE UNCONSTITUTIONALLY INSULATED FHFA DIRECTOR PROVISION OF HERA CAN BE SEVERED OR MUST THE WHOLE STINKING HERA BE FOUND UNCONSTITUTIONAL IN ITS ENTIRETY!
This of course caused quite an uproar from 1 side of the aisle at ACB'S 2 day Senate Confirmation Hearing (It made Phil Donohue look tame by comparison!) I remember Senator Lindsey Graham quizzing ACB about EXACTLY what Severability Analysis is. Later Senator Graham told people not to get too excited about the SCOTUS finding the ACA Unconstitutional in its ENTIRETY BECAUSE A LOT OF TIMES THEY SAVE THE STATUTE AND EXCISE THE Constitutionally offensive provision, JUST LIKE THEY DID IN SEILA LAW!
So yeah, I think they BOTH involve Severability Analysis and the SCOTUS will likely make sure BOTH Severability Analysis cases don't inadvertently conflict with each other, so MAYBE later in the term is when we see it.
That said, NO ONE KNOWS and they could already have written BOTH opinions and believe Collins is ready for prime time on Monday or Thursday, stay tuned!
https://en.m.wikipedia.org/wiki/California_v._Texas#:~:text=Texas%20(Docket%2019-840),and%20Jobs%20Act%20of%202017.
Whether reducing the amount specified in Section 5000A(c) to zero rendered the minimum coverage provision unconstitutional.
If so, whether the minimum coverage provision is severable from the rest of the ACA.
Nice! But I'm still glad Tim Rood and his interviewees are open to talking about this as I think its an important subject. Tim has to maintain civility and that will limit his ability to ask some tough probing questions that may put his guests in an uncomfortable situation and then no one will agree to be interviewed. Loved getting the inside perspective from CP in that last interview! The truth will set you free my friend (and the twins as well after 12.5 years of involuntary servitude!). Gave you a thumbs up!