SCOTUS Orders the Restructuring of Consumer Financial Protection Bureau
On Monday, the Supreme Court decided 5-4 that Congress overstepped its constitutional lines in 2010 by creating the Consumer Financial Protection Bureau (CFPB) and placing it under control of a single director that was independent from the executive branch.
The reason the CFPB was set up this way was so it could be insulated from political pressure. Hence, the President can only fire the CFPB director for “inefficiency, neglect of duty, or malfeasance in office.”
But, in an opinion written by Chief Justice John Roberts, the court said that the notion of an independent bureau unconstitutionally diminishes the power of the executive branch. Roberts wrote, “[T]he CFPB’s single-director structure contravenes this carefully calibrated system by vesting significant governmental power in the hands of a single individual accountable to no one.”
Hence, the court said that the CFPB director should be able to be removed by the President for any reason.
This is a win for conservatives, who have been warning about overregulation from the CFPB since its creation.