The U.S. Supreme Court ruled that the Consumer Financial Protection Bureau's single-director governance structure is unconstitutional and that the president must have the authority to remove the bureau head.
The 5-4 decision strikes down a provision of the Dodd-Frank Act that authorizes sitting presidents to remove CFPB directors only "for cause." The decision, written by Chief Justice John Roberts, allows the bureau to continue to operate with directors removable at will by the president.
ICBA has long advocated replacing the CFPB's single-director governance with a five-member commission. In a joint letter earlier this year, ICBA and other groups said the Consumer Financial Protection Commission Act of 2020 (H.R. 6116) would safeguard the CFPB from political interference while providing a balanced and deliberative approach to supervision.