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What happens to the CFPB (Consumer Finance Protection Bureau)


Ser Scot A Ellison

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There one area of the new administration that I have, particluar, interest in.  The Consumer Finance Protection Bureau (CFPB).  This is an Independent (not executive) agency that was created by the Dodd-Frank act.  It's first Director Richard Cordray was appointed and confirmed in 2014.  Under the act Cordray's term doesn't expire until 2018 mid way through Trumps term as President.  

Now here's the interesting part.  Recently, the DC Circuit Court of Appeals ("DC App.")(where Judge Garland (President Obama's nominee to replace Justice Scalia) is the chief Judge) in a three judge panel with one dissent ruled that the structure of the CFPB is unconstitutional because rather than having a board, like most independent agencies, it has a single director who doesn't serve at the pleasure of the President.  The DC App. ruled that this is an unconstitutional concentration of power in a single person who can control all actions of the agency and who is in an unelected position.  The DC App. further ruled that the Constitutional problem is remedied if the Director does serve at the pleasure of the President like most agencies with a single director.  

The CFPB and Director Cordray... disagree.  They have petitioned for an En Banc review of the three judge decision.  That doesn't have to be granted and if denied or if the En Banc panel does agree with the three judge ruling the CFPB can appeal to the SCOTUS.  

So, the CFPB a somewhat controversial federal agency will be headed (singly) by someone who is at polar opposites with the incoming administration.  What is really interesting is that Cordray can still be removed... "for cause".  No board of any independent agency has ever had someone removed "for cause".  But then again, no other independent agency has ever been lead by a single person before.  

This will be interesting.

https://www.cato.org/blog/long-path-director-cordrays-removal

Another interesting article:

http://www.nationalreview.com/article/443227/consumer-financial-protection-bureau-tragic-failures

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that is way too much unaccountable power concentrated in one person

rule by minister kings needs to be eliminated

The desire to control this court was why Reid nuked the filibuster. Any ruling not in Obama's favor will be reviewed En Banc and in his favor (and vice versa for any challenge to GOP legislation). 

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