Ninth Circuit upholds constitutionality of CFPB

This morning, in a unanimous opinion in a case is called CFPB v. Seila Law, Inc., the Ninth Circuit decided a challenge to the CFPB's structure.

The CFPB is headed by a single Director who exercises substantial executive power but can be removed by the President only for cause. Relying on the Supreme Court’s separation-of-powers decisions in Humphrey’s Executor v. United States, 295 U.S. 602 (1935), and Morrison v. Olson, 487 U.S. 654 (1988), the court held that the CFPB’s structure is constitutionally permissible.

The panel also rejected defendant Seila Law’s challenge to the CFPB's civil investigative demand.

The court's decision is here.

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