Friday, July 10, 2020 / by Erik Bjorklund
The Supreme Court, in a 5-4 decision along partisan
lines, took a chunk out of the intentions the Dodd-Frank Act had for the Consumer
Financial Protection Bureau (CFPB) when it created it. The court ruled that the
single-director structure of the agency is unconstitutional as is its limits on
the President's ability to replace its occupant.
When Congress established CFPB it set up its funding mechanism
independent of the House appropriations process, ruling its budget should come
from the Federal Reserve. It also established a single director to head the
agency and protected the occupant from being fired except for "inefficiency, neglect of duty or
malfeasance in office" during a five-year term, Each stricture was a bid to insulate the
agency from political interference.