Senator Elizabeth Warren declared victory on Monday after the Supreme Court found the governing structure of her Great Recession-era brainchild, the Consumer Financial Protection Bureau, unconstitutional ― but largely left the agency itself intact.
Warren, who set up the agency, said in a series of tweets that although she disagreed with the court’s decision to make it easier for the president to remove the head of the agency, the CFBP as an entity had made it through a series of challenges from the right.
“Let’s not lose sight of the bigger picture: after years of industry attacks and GOP opposition, a conservative Supreme Court recognized what we all knew: the CFPB itself and the law that created it is constitutional,” Warren tweeted Monday. “The CFPB is here to stay.”
The Consumer Financial Protection Bureau was established in the wake of the Great Recession by the 2010 Dodd-Frank financial reform bill, and has oversight authority over big banks and credit card companies. It was created to put a stop to deceptive practices from large companies like those that pushed millions of home buyers into mortgages that they could not afford.
In a 5 - 4 ruling on Monday, the Supreme Court said that the CFPB’s structure as a federal agency run by a director who cannot be fired except in cases of “inefficiency, neglect of duty, or malfeasance,” was unconstitutional. When it created the consumer finance watchdog agency in the wake of the 2008 financial crisis, Congress sought to protect it from political influence, but opponents argued that shielding the director from removal violated the separation of powers principle of the constitution.
In her tweets, Warren accused the CFPB’s current director, Trump appointee Kathy Kraninger, of gutting portions of the agency and urged her to “stop working for the crooks and start working for working families.”
Trump’s @CFPBDirector Kathy Kraninger gutted the fair lending office and stopped filing lawsuits when companies cheat consumers. Now that the Supreme Court has reaffirmed the @CFPB's existence, Kraninger should stop working for the crooks and start working for working families.— Elizabeth Warren (@SenWarren) June 29, 2020
In a statement on Monday, White House press secretary Kayleigh McEnany praised the Supreme Court’s ruling.
“In practice, the CFPB was designed to prevent the American people, to the maximum extent possible, from exercising oversight over CFPB’s sole director, who was granted vast authority over the financial lives of every American,” she said.
Material from Globe wire services was used in this report.