Recently a federal district judge ruled that the Consumer Financial Protection Bureau (CFPB) structure violates the Constitution. The judge of the Southern District of New York ruled that the creation of the CFPB as an independent agency with a director that could only be dismissed for wrongdoing was unconstitutional. The judge (Loretta Preska) said “is unconstitutionally structured because it is an independent agency that exercises substantial executive power and is headed by a single Director.”
She ruled that the entire section of the 2010 Dodd-Frank Act that established the CFPB should be stricken however did not issue any order to close down the bureau. The ruling increases the probability that the issue of whether the CFPB is constitutional will be taken up again sooner than later. My friend (LOL) Senator Elizabeth Warren was the primary person behind designing the bureau while serving as a special adviser to the president (former President Obama).
Republicans and business advocates accuse the bureau of overstepping it boundaries and abusing its power while the Democrats have liked the oversight and regulation that the CFPB provided.
READ MORE: http://thehill.com/policy/finance/393510-federal-court-rules-consumer-bureau-structure-unconstitutional