CFPB Regains Measure of Independence on Appeals Court Ruling

The Consumer Financial Protection Bureau has regained a measure of independence. A U.S. appeals court ruled the president can only fire the agency’s head for neglect or wrongdoing and not for just any reason, as the Trump administration sought.

Congress meant to protect the bureau from the ebb and flow of politics, according to the Washington-based court’s majority opinion. Giving the president more latitude to fire the director “would put the historically established independence of financial regulators and numerous other independent agencies at risk,” U.S. Circuit Judge Nina Pillard wrote.

The 7-3 ruling Jan. 31 comes too late for the ...