Watch­dog struc­ture ruled un­con­sti­tu­tional

China Daily (USA) - - BUSINESS -

The US con­sumer watch­dog agency, en­meshed in par­ti­san pol­i­tics since its cre­ation af­ter the fi­nan­cial cri­sis, now has had its struc­ture ruled un­con­sti­tu­tional be­cause it gives too much power to a sin­gle agency di­rec­tor. Afed­eral ap­peals court ruled on Tues­day that the way the Con­sumer Fi­nan­cial Pro­tec­tion Bu­reau is or­ga­nized vi­o­lates the Con­sti­tu­tion’s sep­a­ra­tion of pow­ers by lim­it­ing the pres­i­dent’s abil­ity to re­move the di­rec­tor who heads the agency. The law cre­at­ing the in­de­pen­dent agency af­ter the 2008-09 cri­sis says its di­rec­tor can only be re­moved “for cause,” such as ne­glect of duty, and not over po­lit­i­cal dif­fer­ences. The court said that con­flicts with the con­sti­tu­tion, which al­lows the pres­i­dent to re­move ex­ec­u­tives for any rea­son.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.