National Consumer Law Center Statement on Appellate Court Order to Vacate and Review Questionable Decision on Trump Power over Consumer Watchdog
(WASHINGTON) Today, the full U.S. Court of Appeals for the District of Columbia Circuit agreed to rehear a decision that would have posed a serious threat to the integrity and independence of the Consumer Financial Protection Bureau and its director Richard Cordray. The decision, issued by three of the Circuit’s judges in October 2016, struck down a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act that permitted the President to dismiss the CFPB director only for “inefficiency, neglect of duty, or malfeasance in office.” Instead, the 2016 decision held that the President could fire the CFPB director at will. Wall Street lobbyists and their allies in Washington have urged President Trump to fire Cordray before his term ends in July 2018. The full Court of Appeals vacated the three-judge panel’s decision and scheduled the case for argument on May 24.