The justices, by a 5-4 vote, said Congress violated the president's constitutional authority over the executive branch when it established the Consumer Financial Protection Bureau with a director appointed by the president for a five-year term, but who could not be fired except for a specific cause, such as "neglect of duty or malfeasance in office". For the right, which has long opposed the existence of the CFPB, the high court's majority weakened the agency's independence - which is clearly a step in Republicans' preferred direction - but left the bureau otherwise intact. Roberts wrote: "The CFPB Director's removal protection is severable from the other statutory provisions bearing on the CFPB's authority". Tell us by sounding off in the comments section.
Trump's administration and the current CFPB leadership agreed with the challengers in the case, although administration lawyers stopped short of arguing that the entire agency should be struck down.More news: NY Reported Only 5 COVID-19 Deaths Saturday, Cuomo Says
Monday's Supreme Court decision is the first chink in the independent armor of those agencies since 1933 when President Franklin Roosevelt tried to fire William Humphrey, one of five commissioners on the Federal Trade Commission. "Nothing in the Supreme Court ruling changes that", Warren wrote. Kathy Kraninger, named by Trump to head the agency, took office in 2018 over the objections of Democrats and consumer advocates.
Warren touted the bureau during her presidential campaign, saying it returned more than $12 billion to consumers under the Obama administration.
The CFPB was the brainchild of MA senator and former Democratic presidential candidate Elizabeth Warren. "The CFPB is here to stay". A prime example was a crackdown on Wells Fargo.More news: Gilead prices remdesivir at $390 per vial
The @CFPB's job is to get the tricks & traps out of credit cards, mortgages, student loans, & other financial products & hold big banks accountable when they cheat people.
The CFPB, as part of its investigation, issued a letter to Seila demanding certain documents.
The case before the Supreme Court was brought by a California law firm, Seila Law. Typically, the Justice Department defends federal agencies facing legal challenges.More news: Iran issues arrest warrant for Trump over Qassem Soleimani killing
"Instead of placing the agency under the leadership of a board with multiple members, Congress provided that the CFPB would be led by a single director, who serves for a longer term than the president and can not be removed by the president except for inefficiency, neglect or malfeasance". The Federal Reserve Board, he noted, is a "great example of why Congress imposes these kinds of restrictions", so as to protect some of our most important institutions "from destabilizing political crosscurrents".