On Wednesday morning the Supreme
Court ruled that the statutory restrictions on the president’s ability to remove
the chairman of the Federal Housing Finance Agency (FHFA) violates the Constitution’s
separation of powers. Within hours the White House announced it would be
replacing Mark Calabria who currently holds that position.
The decision, in a case now known as
Collins v Yellen, was similar to Seila Law v The Consumer Financial Protection
Bureau (CFPB) which was decided last year in favor of the plaintiffs. Both FHFA
and CFPB were created during the housing crisis and had similar independent
structures, each headed by a single chairperson for a five-year term. Neither
chairperson could be removed from office except for cause.