WASHINGTON, Oct 11 (Reuters) - The U.S. Consumer Financial Protection Bureau is looking into the next step in a court battle over its structure, after a federal appeals court on Tuesday declared that the power vested in its sole director was unconsitutional but said it could continue operating under the president’s supervision.
“The Bureau believes that Congress’s decision to make the director removable only for cause is consistent with Supreme Court precedent and the bureau is considering options for seeking further review of the court’s decision,” said CFPB spokesperson Moira Vahey.
The agency was created in the 2010 Dodd-Frank Wall Street reform law, with a clause saying its single director can only be dismissed by the President “for cause.”
In Tuesday’s decision, a three-judge panel struck out that language. The bureau is expected to now petition the U.S. Court of Appeals for the District of Columbia Circuit for an “en banc” review of the decision, which would involve the entire court. It could also ask the Supreme Court to hear the case. (Reporting by Lisa Lambert; Editing by Chizu Nomiyama)