SCOTUS Blows Gaping Hole in Liz Warren's Rogue CFPB, Making it Accountable to the President
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Despite another horrid ruling from the U.S. Supreme Court on Monday striking down a Louisiana law that required physicians who perform abortions to have admitting privileges at a local hospital, the high court nevertheless got another decision correct.
Readers may recall that a new agency born out of ‘financial reform’ legislation during Barack Obama’s first term – when Democrats controlled both chambers of Congress and the White House – had nothing to do with ‘fixing systemic racism’ in our society, but rather on giving dictatorial control over the country’s financial institutions to the government.
The director of the agency – the Consumer Financial Protection Bureau, the brainchild of Sen. Elizabeth “Fauxcohontas” Warren of Massachusetts – was bequeathed with so much power he or she was literally beyond congressional oversight and, for the most part, untouchable even by presidents
This, despite the fact that the CFPB was an Executive Branch agency.
On Monday, in a ruling authored by Chief Justice John Roberts, who sided with the high court’s libs in the abortion ruling, the high court eliminated the part of the law that said the CFPB director could only be fired for “inefficiency, neglect of duty or malfeasance in office.”
Now, however, like every other ranking official within the Executive Branch, the CFPB director serves at the pleasure of the president and can be fired at will.
“The CFPB Director has no boss, peers, or voters to report to. Yet the Director wields vast rulemaking, enforcement, and adjudicatory authority over a significant portion of the US economy,” Roberts wrote, the Independent Sentinel reported.
“Such an agency lacks a foundation in historical practice and clashes with constitutional structure by concentrating power in a unilateral actor insulated from Presidential control.”
“The CFPB’s single-director structure contravenes this carefully calibrated system by vesting significant governmental power in the hands of a single individual accountable to no one,” Roberts noted further, the National Review reported, adding:
While a 1935 decision “permitted Congress to give for-cause removal protection to a multimember body of experts who were balanced along partisan lines,” the court said the decision did not grant that authority to a single director vested with executive power.
The court changed the CFPB removal provision to make the director subject to presidential removal for any reason, ending a polarizing 10-year legal battle over the agency, which was created in the wake of the 2008 financial crisis to protect consumers from abusive financial-industry practices on products like mortgages, student loans and credit cards.
Most Republicans have always hated the provision of law granting CFPB administrators dictatorial powers over the country’s financial institutions. But because they are authoritarians at heart, most Democrats loved it.
The Trump administration is in the ‘hate it’ camp, as is current CFPD Director Kathy Kraninger; the administration, along with Kraninger, have argued that the provision is unconstitutional, and now the high court concurred.
But the president’s work draining the swamp and shifting power out of D.C. isn’t done, the National Review notes further.
“The court’s decision could spell trouble for the similarly-structured Federal Housing Finance Agency, which oversees mortgage companies like Fannie Mae and Freddie Mac under the leadership of a director appointed to a five-year term who can only be removed for cause,” the site reported.