The 5-4 decision agreed with the position of Seila Law, a California law firm that sued the bureau, arguing that the CFPB's leadership structure - in which a sole director could be fired only for cause - violated the Constitution's separation of powers rule, CNBC reported. The director of that agency still works for the American people.
"This fundamental textual and historical error about "all" is the basis of the "exclusivist" unitary executive argument against the congressional and Manhattan DA subpoenas for Trump's tax returns".
"We will continue with our important mission of protecting consumers with no question that we are fully accountable to the president", she said in a statement. "The agency may therefore continue to operate, but its director, in light of our decision, must be removable by the president at will".
The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2010, created the CFPB to serve as an independent agency for the goal of enforcing consumer protection laws in the financial services space. While the President has full confidence in the current director of the CFPB and believes that she has fully upheld her statutory duties, the President also believes that no official should hold such huge powers without, at least, being directly accountable to a democratically-elected President regardless of party affiliation.
The decision should have no immediate impact at the agency, because the current director, Kathy Kraninger, was appointed by President Trump in 2018.
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The "safe list" will be reviewed every two weeks and adjusted depending on the latest Coronavirus developments in each country. The EU says that China could also be added to this list but only if Beijing reciprocates by permitting entry to EU nationals.
However, the court stopped short of more sweeping action, such as weakening its enforcement abilities or even abolishing the CFPB altogether, which has been a goal of many Republicans and the banking industry.
"My first choice is a strong consumer agency", Warren told the HuffPost at the time, outlining her opposition to a CFPB with less independence.
But the Constitution gives the president the power to remove top executive branch officials for any reason or no reason at all, the challengers said.
Consumer advocates warned the decision will effectively undermine the independence of the watchdog, which was created in the wake of the 2008 financial crisis. Justices Samuel Alito and Brett Kavanaugh joined Roberts and the liberal justices in concluding the restrictions involving the director could be severed.
Then-President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, creating the CFPB, and appointed Warren to take the lead role in establishing it.
That director, Richard Cordray, resigned before it was determined whether Trump could replace him. If former Vice President Joe Biden is elected as president, he would be free to fire Kraninger and replace her.