The Trump administration and the Consumer Financial Protection Bureau (CFPB) on Tuesday asked the Supreme Court to adopt a lawsuit that challenges the agency's constitutionality.
The Top Justice Department and CFPB attorneys argued in a brief filed Tuesday  that the structure of the powerful economic watchdog violates the president's executive authority.
The lawyers urged the Supreme Court to raise a case that could have fatal consequences for the CFPB, halt or weaken efforts to politicize the financial sector.
"The structure of the special unit, including the cause limitation in the removal of its sole director, violates the constitutional separation of powers," the administration's attorneys wrote, asking the Supreme Court to address the lawsuit, Selia Law v. CFPB, of the 5th Circuit Court of Appeals. [1
The CFPB was created by the Dodd-Frank Wall Street Reform Act and began overseeing banks and lenders in 2012. Under the leadership of former director Richard Cordray Richard Adams CordrayWatchdog agency must choose one site: Consumers or Scammers Cranes CFPB provide consumers with the tools to help themselves. House reprimands Mulvaney's attempt to defame the Consumer Office MORE a Democrat, the agency issued extensive regulations and severe penalties for companies alleged to have harmed or abused consumers.
Republicans and spokesmen for the financial industry had long sought to curb the CFPB's power through lawsuits and legislation, insisting that the agency and its leader had abused their excessive power.
CFPB critics argued that by making the agency director fired by the president only "for cause", which is generally considered to be severe incompetence or misconduct, Dodd-Frank prevented the president's authority over the executive branch.
The U.S. District Court for the District of Columbia Circuit ruled in 2016 that the controversial watchdog bureau's structure was unconstitutional. But that decision, authored by possible Supreme Court Justice Brett Kavanaugh, was overturned by full court in 2018.
The CFPB remained largely isolated from GOP attacks until Cordray resigned in November 2017 to run for governor of Ohio. His resignation allowed Trump to nominate Mick Mulvaney John (Mick) Michael MulvaneyNOAA chief praises bureau researchers after backing Trump's tweet The Hill's Morning Report – Biden is steady in third debate as top tier remains the same Democrats are making calls to investigate NOAA MORE now Chief of Staff of the White House, as CFPB's acting director.
Mulvaney took bold steps to weaken the CFPB from within, suspend and cut certain Cordray era regulations and facilitate the agency's oversight of the financial sector and destructive agency morale.
Current CFPB Director Kathy Kraninger has taken a more moderate hold on the agency, though her support for making her position combustible by the president reflects, in part, the depth of GOP skepticism to its structure.