May 6, 2019 / 11:32 PM / 14 days ago

9th Circuit rejects law firm's challenge to CFPB constitutionality

A federal appeals court has ruled that the structure of the U.S. Consumer Protection Bureau does not violate the U.S. Constitution, affirming the right of the financial watchdog to enforce a subpoena against a law firm it is investigating.

In a decision on Monday, a unanimous three-judge panel of the 9th U.S. Circuit of Appeals rejected the argument of Seila Law that the bureau’s structure violates the Constitution’s separation of powers clause because too much power is vested in a single director who can only be removed by the president for cause.

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