The Supreme Court found that because the CFPB director, unlike the typical federal official, isn't accountable to-that is, can not be fired by-the elected president of the United States who appointed the person, the agency's structure violates the separation of powers doctrine.
"This fundamental textual and historical error about "all" is the basis of the "exclusivist" unitary executive argument against the congressional and Manhattan DA subpoenas for Trump's tax returns".
The big news from the Supreme Court this morning was the decision related to Louisiana's abortion restrictions, but this one deserves some attention, too. Does it intrude on the president's constitutional authority to direct the executive branch if he is not free to fire the CFPB's director?
With its ruling, the high court handed a victory to conservatives on Capitol Hill who have long taken aim at the consumer watchdog agency, which was created in 2010 in the wake of the financial crisis.
The US Supreme Court ruled Monday in Seila Law LLC. v. Consumer Financial Protection Bureau that the leadership structure of the Consumer Financial Protection Bureau (CFPB) violates the separation of powers. Elizabeth Warren (D-Mass.) - who spearheaded the creation of the agency - celebrated the fact that the agency would be preserved. While the President has full confidence in the current director of the CFPB and believes that she has fully upheld her statutory duties, the President also believes that no official should hold such vast powers without, at least, being directly accountable to a democratically-elected President regardless of party affiliation.
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In a 5-4 ruling, the court said Congress had overstepped in mandating that the agency be led by a single director appointed to a five-year term who could only be fired for "inefficiency, neglect of duty or malfeasance in office".
Warren defended the CFPB on Twitter noting that even after the supreme court ruling it remained an "independent agency". However, the Supreme Court also found the removal provision severable from other parts of Dodd-Frank. When the agency a a sent a demand for information, the law firm refused and alleged the bureau was operating unconstitutionally.
Justices Clarence Thomas, Samuel Alito, Neil Gorsuch and Brett Kavanaugh joined with Roberts on the majority opinion. Former acting White House chief of staff Mick Mulvaney once called the CFPB a "joke" and co-sponsored legislation to get rid of it.
The Consumer Financial Protection Bureau (CFPB), established by the Dodd-Frank Act, was instead designed based on a distrust of the American people's ability to participate in their government.
But Seila asked the CFPB to put its request for records aside, arguing it was invalid because the watchdog agency's structure was unconstitutional. The president then nominated Kraninger to permanently helm the CFPB, and she was narrowly confirmed by the Senate in December 2018.