Con­sumer watch­dog struc­ture is ruled un­con­sti­tu­tional

Daily Freeman (Kingston, NY) - - NATION+WORLD -

The U.S. 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.

A fed­eral ap­peals court ruled 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.

The rul­ing came from a three­judge panel of the U.S. Court of Ap­peals for the Dis­trict of Columbia Cir­cuit.

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