March 17, 2017Blog Posts

Trump Administration Claims Power to Remove CFPB Director

Bloomberg BNA:

The Trump administration March 17 asked one of the nation’s most powerful courts to uphold an October court ruling that said the Consumer Financial Protection Bureau’s leadership structure violates the Constitution ( PHH Corp. v. Cons. Fin. Protection Bureau , D.C. Cir. 15-cv-01177, brief filed 3/17/17 ).

“In sum, a removal restriction for the Director of the CFPB is an unwarranted limitation on the President’s executive power,” said the U.S. government’s friend of the court brief filed in the U.S. Court of Appeals for the District of Columbia Circuit. “This Court should not extend the exception established by the Supreme Court in Humphrey’s Executor to undermine the general constitutional rule that the President may remove principal officers at will,” it said, referring to a 1935 U.S. Supreme Court ruling that carved out an exception to the president’s general removal powers.

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