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Biden Sacks Director of US Federal Housing Finance Agency After Court Ruling | Voice of America

By on June 24, 2021 0

US President Joe Biden has sacked the head of the agency that oversees major mortgage entities Fannie Mae and Freddie Mac after a Supreme Court ruling made it easier for a president.

In a 7-2 ruling on Wednesday, the court said a rule that the head of the Federal Housing Finance Agency could only be removed “for cause” was unconstitutional.

“The power of impeachment helps the president maintain a degree of control over subordinates he needs to perform his duties as head of the executive branch, and it ensures that those subordinates serve the people effectively and in accordance with the policies that the people presumably elected the president to promote, ”Judge Samuel Alito wrote in the majority opinion.

The judges rendered a similar decision involving the Consumer Finance Protection Bureau last year.

Shortly after the decision, FHFA director Mark Calabria said in a statement: “I respect the decision of the Supreme Court and the authority of the president to dismiss the director of the Federal Housing Finance Agency. .

Calabria was appointed head of the agency by former President Donald Trump and confirmed to that post in 2019 for a five-year term.

The agency released a statement on Wednesday saying Biden had appointed Sandra Thompson to act as the FHFA’s interim leader.

Thompson had been deputy director of the agency’s mission and housing goals division, and said she was honored to take on the role of interim director until a permanent director was confirmed.

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