Why the CFPB’s loss at the Supreme Court is really a win

Source: Richard Cordray, former CFPB Director, Washington Post (Paid Registration)

Our aggressive work to protect people from being cheated and mistreated understandably aroused opposition from some of these powerful companies. And so, ever since, the financial industry has been peppering the bureau with various challenges to its constitutionality. Among them was the claim that a single director of an agency wielding so much power does not square with strong notions of presidential control over the executive branch of the government. Some courts accepted this claim; others rejected it. Eventually, the case found its way to the Supreme Court, in Seila Law v. Consumer Financial Protection Bureau, the court issued a 5-to-4 ruling striking down the bureau’s leadership structure as unconstitutional.

Although the court did invalidate the independent tenure of the CFPB’s single director, seven of the nine justices stopped right there and refused to go further. They left all other aspects of the agency in place.

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