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Is the creation of the CFPB whose leader can't be removed by the…
Is the creation of the CFPB whose leader can't be removed by the president except for cause in violation of the constitutional principle of checks and balances?
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Court Case
PHH Corporation v. Consumer Fraud Protection Bureau, the director’s protection against removal by the executive was challenged as an unconstitutional impediment to the president’s power (from prompt)
case started when CFPB director Cordray added a $103 million increased onto a $6 mil fine initially levied against PHH for allegedly illegally referring consumers to mortgage insurers in exchange for kickbacks
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the fed. Court of Appeals ruled in 2016 that the CFPB's leadership structure was unconstitutional and vacated the $103 mil fine
The FCPB asked the court to rehear the case en band (the entire court to hear the case) and the court agreed in Feb. 2017
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The Department of Justice filed an amicus brief May 2017, asking the court to rule the CFPB's leadership structure unconstitutional and grant Trump the authority to fire the CFPB's director at will
The full Court of Appeals declared the CFPB to be constitutionally structured and that the director can only be removed for cause
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Constitution
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doesn't even mention the bureaucracy. it was created in order for the president to carry out the law
Federalist 51
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the best security against a gradual concentration of power in any one branch is to provide constitutional safeguards that would make such concentration difficult
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