Richard Cordray

Court says Consumer Financial Protection Bureau is unconstitutional

Court says Consumer Financial Protection Bureau is unconstitutional

A U.S. consumer watchdog agency that helped unravel the Wells Fargo & Co. scandal has an unconstitutional structure because it gives too much power to its director, a federal appeals court ruled Tuesday.

The court said the way that the Consumer Financial Protection Bureau is organized violates the Constitution’s separation of powers because it limits the president’s ability to remove the agency’s director, currently Richard Cordray, a Democrat and former Ohio attorney general.

The ruling, if upheld, would curtail the authority of an agency that has been opposed by the banking industry and some Republican critics.

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