The Supreme Court ruled Monday June 29 that the structure of the Consumer Financial Protection Bureau (CFPB) is unconstitutional, but it can keep operating under new rules.
“The CFPB’s single-Director configuration is also incompatible with the structure of the Constitution, which—with the sole exception of the Presidency—scrupulously avoids concentrating power in the hands of any single individual,” the ruling states.
Additionally, the court said its director “must be removable by the President at will.”
The CFPB was created by Sen. Elizabeth Warren (D-Massachusetts) prior to her time as an elected official and created by Congress following the 2008 financial collapse.
Chief Justice John Roberts said in his opinion that in organizing the CFPB, Congress “deviated from the structure” of every other independent agency.
“Instead of placing the agency under the leadership of a board with multiple members, Congress provided that the CFPB would be led by a single Director, who serves for a longer term than the President and cannot be removed by the President except for inefficiency, neglect, or malfeasance. The CFPB Director has no boss, peers, or voters to report to,” he said.