The Trump Administration wants to get the ability to fire the head of the CFPB for any reason, according to an article in Forbes. If the courts agree that there is too much power investing in the agency, then it is likely that the agency will be looking for a new director soon.
The administration’s latest act to change Dodd-Frank is to ask a court to declare the structure of the Consumer Financial Protection Bureau (CFPB) unconstitutional. Trump wants the right to fire the head of the agency for any reason. Under its current organization, the president cannot remove the CFPB director except for cause. If Trump gets his wish, the likely result would be significant political pressure on anyone in charge of the agency by whomever is in power at the time. That could indirectly undermine the independence, and focus on Wall Street, the CFPB has exhibited.
With the anti-regulatory mood of the executive branch and Congress, it is likely that the CFPB will face continued challenges to its structure, authority, and perhaps even its existence over the next few years. Much will depend on whether or not the control of Congress changes in 2018.
Overview by Ben Jackson, Director, Prepaid Advisory Service at Mercator Advisory Group
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