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Supreme Court rules President can remove head of the CFPB at will

At its root, the issue is the statutory restriction written into Dodd-Frank limiting the President's authority to remove the director of the CFPB. Currently, the agency is run by one (1) director, who can only be removed by the President for cause, i.e. "inefficiency, neglect of duty or malfeasance of office." For years, Republicans argued the protections afforded to the agency's director, who serves a five-year term and can only be removed for cause violated the separation of powers.


The Supreme Court decision marks a major win. The director is now removable by the President at will. Hopes for a dissolution of the CFPB went unfulfilled, as the decision preserves the agency by severing the removal clause from the rest of the law.


This decision could have major implications for the director of FHFA, who also has a five-year term and can only be removed for cause.


See SCOTUS Blog Amy Howe's Argument Analysis below:




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