Mr Cooper Group Inc (COOP)

[eet2]

posted by Bopfan on another board.

No Retroactive Bar to WMI's Claim Against the FDIC 48 minutes ago Yesterday there was a post suggesting that Congress would retroactively amend the FDIC statues to have the effect of undoing WMI's claim.

This is preposterous. In the first place changing or enacting a law to punish a specific person (WMI) is prohibited under the Constitution's ban against Bills of Attainder.

In the second place, it would likely violate the Constitution's ban against ex post facto laws, which are prohibited in criminal cases and disfavored in civil law where the retroactive legislation would punish.

Finally, the reason Congress enacted legislation that allowed claims was to give recourse against FDIC mistakes that resulted in losses. To close this window would mean the FDIC (a government agency) would face no liability for incompetently handled seizures resulting in losses. This is impermissible under the 5th Amendment which requires that the government compensate people whose property it has seized. WMI-punishing retroactive legislation would be unconstitutional if done only in WMI's case, but anyone can see how it could be done over and over again to limit the 5th Amendment's applicability to all sorts of takings.

I wouldn't worry about this; any legislation limiting claims would most likely be drafted to apply only to future FDIC claimants.