Podcast

The Supreme Court will decide if the Director of the Consumer Financial Protection Bureau servers at the pleasure of a President or if the CFBP Director can only be removed “for cause” by a President.

The CFBP was originally envisioned to be insulated from political influence, hence the policy that the President could only replace the Director “for cause”.

But when mortgage lender PHH won a landmark case against CFBP in 2016 (including the dismissal of a $103 million dollar fine) the United States Court of Appeals for the District of Columbia ruled that the “for cause” provision was unconstitutional.

The CFBP requested, and the Supreme Court has accepted, a full court review of the Appeals Court ruling.

Interestingly the current head of the CFBP Kathleen Kraninger has sided with Justice Department and the Trump administration saying that a President should be able to dismiss the CFBP Director at will, without the need to show cause.