The single director has more authority than even a commission chair, who has to get a majority of members for any policy or enforcement move. Kavanaugh already rejected that idea in his D.C. Circuit. The case is Seila Law LLC v. Consumer Financial Protection Bureau, U.S., 19-7, Oral Arguments 3/3/20To contact the editors responsible for this story: The Trump administration wants the CFPB declared unconstitutional, and the for-cause removal provision severed from its governing statute. Clement, the former solicitor general tapped by the Supreme Court to defend the CFPBâs constitutionality, is set to argue Tuesday that Clementâs briefing papers question whether a CFPB civil investigative demand at the center of Seila Lawâs challenge is the right kind of case to potentially overturn decades of Supreme Court precedent regarding leadership at independent federal agencies. Clement says the court should find that the CFPB is constitutional. Seila Law says Dodd-Frank Act provisions that allow the president to fire the CFPB director only for cause violate the Constitutionâs separation of powers clause. Consumer Financial Protection Bureau headquarters in Washington, March 5, 2019. Facts of the case. Paul Clement argues that Seila Law and the CFPB have turned the case into a hypothetical question of removal based on underlying facts which do not involve removal at all. If the president had a problem with the investigative demand, he could have fired Kraninger, Clement argued in a January brief. The CFPB is likely to survive in one form or another once the dust settles, according to its former chief Cordray. Pincus said he expects the justices to ask a number of questions exploring the issue. The Seila Law case presents the Supreme Court with three different paths forward. Paul D. Clement Court-appointed amicus curiae in support of the judgment on Q1. The Trump administration argues that the CFPB is different from other independent agencies like the Federal Trade Commission, which have multiple members.
Oct 28 2019: Blanket Consent filed by Respondent, Consumer Financial Protection Bureau: Oct 28 2019
CFPB Director Kathleen Kraninger adopted the Trump administrationâs position that she serves at the will of the president, and that the CFPBâs structure is unconstitutional.
The CFPBâs for-cause removal protections for its director, and the directorâs five-year term, prevent presidents from having their priorities represented at the agency, said Andrew Pincus, a partner with Mayer Brown LLPâs appellate team. Indeed, SCOTUSblog reports that he is “widely regarded as one of the best Supreme Court lawyers of his generation.” His biography states that he has argued over 95 cases before the Supreme Court, and since 2000, has argued more cases before the Supreme Court than any lawyer in or out of government.by the Consumer Financial Services Group at Ballard Spahr LLPThe Consumer Financial Services Group is nationally recognized for its guidance in structuring and documenting new consumer financial services products, its experience with the full range of federal and state consumer credit laws throughout the country, and its skill in litigation defense and avoidance, including pioneering work in pre-dispute arbitration programs. Log in to access all of your Bloomberg Law products
Blanket Consent filed by Petitioner, Seila Law LLC. Roberts and Clement âshare a similar view in a lot of ways in their approach to cases,â she said. Republican lawmakers and the financial services industry have long complained that limits on the presidentâs power to fire the CFPBâs directorâcoupled with the agencyâs independent fundingâ make it unaccountable to both the executive branch and Congress.The U.S. Court of Appeals for the Ninth Circuit in May rejected Seila Lawâs argument that the CFPB was unconstitutional, and allowed the bureau to enforce its civil subpoena against the California debt collection law firm.
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