High Court’s CFPB Ruling May Leave Other Agencies Exposed
- Source: Law360.com
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Article Highlights:
The U.S. Supreme Court ruled on Monday that the Consumer Financial Protection Bureau’s (CFPB) structure was unconstitutional with the tenure protection given to the CFPB’s director through the Dodd-Frank Act. However, instead of striking down the CFPB, the ruling declared that the constitutional flaw could be corrected by eliminating the “for-cause” removal restriction in favor of presidential removal “at will”.
Attorneys told Law360 that “other federal regulatory bodies whose leaders are shielded from at-will removal by the president” may be challenged. These may include the following entities:
- Federal Trade Commission
- Federal Housing Finance Agency (the regulatory agency for Fannie Mae and Freddie Mac)
- Federal Reserve
- Commodity Futures Trading Commission
- U.S. Securities and Exchange Commission