The Consumer Financial Protection Bureau (CFPB) was party to a prosecution in the State of New York under the consumer financial protection act (CFPA). The Defendants contend that the CFPB is unconstitutionally structured and cannot bring the case against them. The US District Court in New York agrees and kicks…
“the CFPB out of the case because the CFPB’s structure (a single director, who does not serve at the pleasure of the president, rather than a board) is unconstitutional; the entire CFPB section should be stricken from the Dodd-Frank Act.”
That’s hilarious.
The exact text from the draft opinion is short and sweet.
As set out below, because the CFPB’s structure is unconstitutional, it lacks the authority to bring claims under the CFPA and is hereby terminated as a party to this action.
Liz Warren’s creation, with the help of Democrats and President Obama, can’t exercise any use of Federal force because it answers to no one.
How refreshing.
But since the DC Circuit recently upheld the structure of the CFPB someone will need to bring this before the Supreme Court to iron out the differences.
We can only guess if or when that will happen and how the Supremes would rule. They’ve been taking a very narrow view of things this year so the case would need to be very specific.
H/T John K. Ross – Short Circuit, Volokh Conspiracy
