{"id":10213,"date":"2020-06-29T19:57:47","date_gmt":"2020-06-29T19:57:47","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2020\/06\/29\/supreme-court-says-president-can-fire-consumer-board-head-at-will\/"},"modified":"2026-08-08T04:28:28","modified_gmt":"2026-08-08T04:28:28","slug":"supreme-court-says-president-can-fire-consumer-board-head-at-will","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/federal-oversight\/watchdogs\/2020\/06\/29\/supreme-court-says-president-can-fire-consumer-board-head-at-will\/","title":{"rendered":"Supreme Court says president can fire Consumer board head \u2018at will\u2019"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The Supreme Court on Monday made it easier for the president to fire the head of the Consumer Financial Protection Bureau.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The justices struck down restrictions Congress had written on when the president can remove the bureau\u2019s director.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe agency may &#8230; continue to operate, but its Director, in light of our decision, must be removable by the President at will,\u201d Chief Justice John Roberts wrote.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The court\u2019s five conservative justices agreed that restrictions Congress imposed on when the president can fire the agency\u2019s director violated the Constitution. But they disagreed on what to do as a result. Roberts and fellow conservative justices Samuel Alito and Brett Kavanaugh said the restrictions could be stricken from the law. The court\u2019s four liberals agreed, though they disagreed the restrictions were improper.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The decision doesn\u2019t have a big impact on the current head of the agency. <a href=\"https:\/\/www.federaltimes.com\/management\/leadership\/2018\/06\/18\/trump-to-fill-contentious-consumer-protection-post\/\" target=_blank>Kathy Kraninger<\/a>, who was nominated to her current post by the president in 2018, had said she believed the president could fire her at any time.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/management\/2017\/11\/28\/judge-rules-in-favor-of-trump-over-fate-of-consumer-watchdog\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP17331777344580.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Judge sides with Trump\u2019s pick to take over consumer agency<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Judge Timothy Kelly declined to stop President Trump from putting Mick Mulvaney in place as the acting director of the Consumer Financial Protection Bureau.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Under the Dodd-Frank Act that created the agency in response to the 2008 financial crisis, the CFPB\u2019s director is appointed by the president and confirmed by the Senate to a five-year term. The law had said the president could only remove a director for \u201cinefficiency, neglect of duty or malfeasance in office.\u201d That structure could leave a new president with a director chosen by the previous president for some or all of the new president\u2019s time in office. The Trump administration had argued that the restrictions improperly limit the power of the president.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe hold that the CFPB\u2019s leadership by a single individual removable only for inefficiency, neglect, or malfeasance violates the separation of powers,\u201d Roberts wrote.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Defenders of the law\u2019s removal provision had argued the restrictions insulated the agency\u2019s head from presidential pressure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Justice Elena Kagan, writing for herself and three liberal colleagues, called the majority opinion simplistic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhat does the Constitution say about the separation of powers \u2014 and particularly about the President\u2019s removal authority? (Spoiler alert: about the latter, nothing at all.) The majority offers the civics class version of separation of powers \u2014 call it the Schoolhouse Rock definition of the phrase,\u201d she said, referencing the educational, animated short films.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cToday\u2019s decision wipes out a feature of that agency its creators thought fundamental to its mission\u2014a measure of independence from political pressure. I respectfully dissent,\u201d Kagan wrote.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/federaltimes\/federal-oversight\/watchdogs\/2018\/12\/19\/consumer-financial-watchdog-abandons-name-change-plan\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP18239532241033.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Consumer financial watchdog abandons name change plan<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The Consumer Financial Protection Bureau will no longer pursue renaming itself the &quot;Bureau of Consumer Financial Protection,&quot; a change that had been sought by Mick Mulvaney, President Trump&#039;s acting director of the bureau.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The CFPB was the brainchild of Massachusetts senator and former Democratic presidential candidate Elizabeth Warren.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After the ruling, Warren wrote in a series of tweets that the Supreme Court had \u201chanded over more power to Wall Street\u2019s army of lawyers and lobbyists to push out a director who fights for the American people.\u201d But, she said that even after the ruling the CFPB is \u201cstill an independent agency.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe director of that agency still works for the American people. Not Donald Trump. Not Congress. Not the banking industry. Nothing in the Supreme Court ruling changes that,\u201d Warren wrote.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The case is Seila Law LLC v. Consumer Financial Protection Bureau, 19-7.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Supreme Court on Monday made it easier for the president to fire the head of the Consumer Financial Protection 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