Posted February 1, 2018
On Jan. 31, 2018, the full Court of Appeals for the District of Columbia Circuit ruled (7-3) that the Consumer Financial Protection Bureau’s structure is constitutional, thus reversing its previous decision in favor of PHH Corp. The ruling states that the President can only fire the head of the bureau for neglect or wrongdoing (not simply for any reason), affirming the agency’s independence. U.S. Circuit Judge Nina Pillard wrote that permitting the President to have more leeway in reasons that he could fire the Director “would put the historically established independence of financial regulators and numerous other independent agencies at risk”.
It is expected that the Trump administration and PHH Corp will appeal this decision to the U.S. Supreme Court.