Wednesday, October 27, 2021

Briefs Mount to Have FOMB Decisions Overturned

By on August 2, 2019

Opponents to Federal Board Seek Declaration that ‘Junta’s’ Decisions are Unconstitutional

Editor’s note: The following was first published in print, in the Aug. 29, 2019, issue of Caribbean Business.

Opponents of the Financial Oversight & Management Board (FOMB) have filed briefs with the U.S. Supreme Court arguing that all of the board’s decisions should be overturned and seeking a declaration that the FOMB is unconstitutional.

Aurelius Investment and Assured Guaranty, which have challenged the board’s appointments, argued last week that the U.S. First Circuit Court of Appeals was wrong to let the board’s decisions stand based on the “de facto officer’s doctrine,” which allows the decisions of people who appear to act on behalf of the government to remain effective.

“The Appointments Clause is meant to be a vibrant structural safeguard with enduring relevance for the selection of those who lead our federal government, not just a paper tiger,” Aurelius and Assured argued.

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