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CFPB Constitutional Challenge Put on Hold at Second Circuit

Nov. 6, 2019, 4:45 PM

A second federal appeals court has halted litigation over the Consumer Financial Protection Bureau’s leadership structure while the U.S. Supreme Court weighs the bureau’s constitutionality.

The U.S. Court of Appeals for the Second Circuit on Nov. 5 adjourned oral arguments in a CFPB appeal of a lower court decision that found that the bureau’s single-director leadership structure, and for-cause removal protection for the director, were unconstitutional.

In that June 2018 decision, Judge Loretta Preska of the U.S. District Court for the Southern District of New York said that simply removing the for-cause removal provision would not solve the CFPB’s constitutional...

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