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10-11-2016, 01:26 PM #1
Federal Court Rules CFPB Unconstitutional
The DC Circuit Court of appeals just ruled that the Consumer Financial Protection Bureau ("CFPB") is unconstitutional!
I have not yet had a chance to read the opinion. According to reports, the court found that Congress vested to much power in one individual who is not subject to sufficient oversight.
Sources indicate that the ruling will allow the CFPB to continue to operate, but the director will be supervised and may be removed by the President at will. Previously, the director was only removable by the President "for cause".
A CFPB spokesperson stated that the agency will continue its work, while it reviews options to appeal the decision. CFPB critics are calling for the agency to halt additional rule-making and allow Congress a chance to fix its charter.
Meanwhile, CFPB critics claim the decision did not go far enough. They believe the agency should be governed by a bi-partisn panel, much like the FTC and FCC.
The entire decision can be found here.
10-11-2016, 02:39 PM #2
If the only result is that the director serves at the whim of the President so to speak, what is the big deal. Frankly, I cannot believe that she could only be fired for cause.
10-11-2016, 04:17 PM #3
I hope this will not stop the CFPB in doing good work to protect consumers.
10-11-2016, 04:45 PM #4
It will be interesting to see how this plays out. Will Congress amend the statute? Will the Supreme Court hear an appeal?
10-12-2016, 12:13 PM #5
Okay. Problem solved. Why would the CFPB waste taxpayer money and court time to appeal?