In a news-making decision with significant political implications, but probably limited near-term business or legal effects, the United States Court of Appeals for the District of Columbia Circuit held on Tuesday, October 11, 2016, that the structure of the Consumer Financial Protection Bureau (“CFPB”) is unconstitutional.

Overview of Decision -

Established by the Dodd-Frank Act of 2010, the CFPB is an independent agency that is led by a single director, whom the President can remove only for cause—that is, only “in cases of inefficiency, neglect of duty, or malfeasance in office.” The CFPB is thus structured differently from most federal agencies, which are often led by multi-member commissions and whose directors or commissioners the President can remove at will. The D.C. Circuit determined that the CFPB’s unusual structure, combined with its vast statutory mandate, vests too much authority in a single unelected government official to pass constitutional muster. “Indeed,” the court observed, “other than the President, the Director of the CFPB is the single most powerful official in the entire United States Government, at least when measured in terms of unilateral power.” In its lengthy ruling, the D.C. Circuit elaborated on the extensive powers exercised by the CFPB and its director...