Banking Law

CFPB Structure Is Constitutional, Ninth Circuit Says (2)

May 6, 2019, 2:27 PM; Updated: May 6, 2019, 6:45 PM

A federal appeals court ruled that the Consumer Financial Protection Bureau’s requirement that its director be fired only for cause is constitutional, dealing a blow to bureau opponents seeking to get the question before the U.S. Supreme Court.

Provisions in the 2010 Dodd-Frank Act that gave the CFPB independent funding and a single director that could only be fired for cause met constitutional muster based on existing Supreme Court precedent, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit on May 6 ruled.

The ruling also cited a 2018 decision by the full U.S. Court...

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