U.S. Supreme Court gives president more power over consumer financial agency

U.S. Supreme Court gives president more power over consumer financial agency

It also means that CFPB Director Kathy Kraninger can be fired at any time by the president.

The Consumer Financial Protection Bureau (CFPB), formed in the wake of the 2008 financial crash, should continue to exist even though one of the legal provisions that created it is unconstitutional, a divided Supreme Court ruled this morning.

"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 court's four liberal justices concurred in the judgment as to severability. That structure could leave a new president with a director chosen by the previous president for some or all of the new president's time in office.

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.

"We hold that the CFPB's leadership by a single individual removable only for inefficiency, neglect, or malfeasance violates the separation of powers", Roberts wrote. (Spoiler alert: "about the latter, nothing at all.) The majority offers the civics class version of separation of powers - call it the Schoolhouse Rock definition of the phrase", she said, referencing the educational, animated short films. "I respectfully dissent", Kagan wrote. In organizing the CFPB, "Congress deviated from the structure of almost every other independent administrative agency in our history", Roberts wrote.

National Basketball Association may allow personalized statements on jerseys
ESPN's Marc Spears spoke with Paul about the fact that players will be permitted to express themselves in such a manner. NBPA President Chris Paul said the players in Orlando plan to make good use of the attention they anticipate receiving.

Roberts Jr. wrote the majority opinion. Elizabeth Warren says her brainchild agency is "here to stay".

The court, in a 5-4 decision, stopped short of the much more drastic solution of invalidating the Consumer Financial Protection Bureau (CFPB), an agency that was the brainchild of MA senator Elizabeth Warren and was set up in 2011 under Democratic former president Barack Obama. The ruling, which gives a sitting president the ability to fire a CFPB director without cause, has far-reaching implications for other independent agencies with single-director structures such as the Federal Housing Finance Agency. But with the agency facing an unprecedented wave of consumer complaints as millions of laid-off workers deal with their creditors, lawmakers and consumer advocates charge that the bureau is exploiting the crisis to further a pro-industry agenda.

"The Court may well be on a path to eliminate the independence of major federal agencies such as the Federal Reserve, the Federal Communications Commission, and other agencies headed by multiple members or commissioners who are protected from at-will removal by the President", Coglianese added. Not the banking industry. "Nothing in the Supreme Court ruling changes that".

The case is Seila Law v. Consumer Financial Protection Bureau, No. 19-7, in the Supreme Court of the United States.

Related News:



Most liked

‘Family Guy’ voice actor Mike Henry steps down from Cleveland role
He announced via Twitter on Sunday that he is "publicly starting a campaign", already drawing more than 25,000 likes and 5,000 more retweets.

Long-rumored Harry Potter RPG will reportedly release in 2021
The publisher still hasn't announced the game ( due to E3's cancellation ), but that doesn't mean it was scrapped or put on hold. Upon arrival, odd events begin to materialize In the Forbidden Forrest and trouble begins o brew within the castle walls.

India's 1st COVID-19 Vaccine Set for Human Trials
Coronavirus infection has already cost over 16,475 lives in India and the world is now waiting with bated breath for a vaccine. The company has two main facilities that could produce the vaccine itself if it was cleared to go into production.

No new cases of COVID-19 reported in the Peace Region
The average age of death due to COVID-19 in Alberta is 83 years, but a person as young as 27 has perished from the disease. There have been 154 fatalities and 7,996 cases of COVID-19 in Alberta - 520 cases are active, and 7,322 are recovered.

Brad Pitt and I are not dating: Alia Shawkat
Pitt and Shawkat first sparked romance rumors in November 2019 after they were spotted together at an art exhibition. The insider noted that several people in that group are women, but "he isn't dating them".

59 apps banned by government including TikTok, SHAREit, WeChat, UC Browser
Another app falling in the MeitY's list is CamScanner, which is a popular solution for scanning documents in mobile phones. The situation along the contested frontier high in the Himalayas remains tense, with troop buildups on both sides.

Student volunteer grants open; PM details other student programs
Canada has had a "relatively low" overall COVID-19 mortality rate compared to other OECD countries. More than 8,400 Canadians had died of COVID-19 as of June 24.

Sacha Baron Cohen trolls far-right event disguised as bluegrass singer
The councilman also claimed the crowd turned on Cohen and security whisked him away in a waiting ambulance. Inject him with the Wuhan flu. "Inject them with the Wuhan flu or chop 'em up like the Saudis do".

South Africa's Frittelli tests positive for COVID-19
Johnson had to take off his shoes and stood in the water to play his second shot at the par 4, but escaped with par. Gordon, who has no status on either the PGA Tour or the Korn Ferry Tour, had seven birdies in a 64.

This 'smart mask' can transmit and translate messages
Each mask's price nears about $40 and the company plans to ship the first 5,000 units to Japan at the beginning of September. This mask will also allow the organisation to generate revenue via subscriptions from the app that the company will launch.

Reddit bans pro-Trump forum in hate-speech crackdown
Under pressure as more than 90 brands halted their advertising on the platform, Facebook announced on Friday that it would institute stronger rules barring hate speech in ads and add warning labels to politicians' statements that break its rules.

India bans TikTok, WeChat and dozens more Chinese apps
In recent weeks, India and China have been at loggerheads over border disputes over the Galwan Valley in the territory of Ladakh. Thousands of soldiers remain on alert, although both sides said they were trying to resolve the standoff through dialogue.

Vanitha Vijayakumar and Peter Paul marriage: Pictures going viral on social media
Almost 20 people were present during the ceremony owing to the current COVID-19 lockdown situation in the country. This goes the same with the lady Vanitha Vjiaykumar and Peter Paul who just got married.

France's former prime minister Francois Fillon and his wife guilty of fraud
She said working that way allowed her to have a flexible schedule and raise their five children in the Fillons' countryside manor. Fillon insists he was set up for "political assassination" by his rivals and was the victim of a biased judiciary.

American fighter jets again intercept Russian Federationn military aircraft near Russia
In late May, Russian pilots in two Sukhoi Su-35 fighters drew condemnation from the 6th Fleet after they intercepted a U.S. F-22 jets intercepted Russian nuclear-capable bombers near Alaska on three separate occasions, CNN reported.