U.S. Sen. Rob Portman (R-OH) on Wednesday lauded a recent federal appeals court ruling that found that the Consumer Financial Protection Bureau (CFPB) was structured unconstitutionally.
The court found that the CFPB could not constitutionally operate as an independent agency because a single person leads it, not a board of multiple members.
“In 2013, I expressed concern that the CFPB’s vast power is vested in a single director who is not removable at will by the president, and I am gratified the D.C. Circuit has ruled that such an arrangement is unconstitutional,” Portman said.
Portman raised questions about the constitutionality of the CFPB in a 2013 letter to CFPB Director Richard Cordray. Portman raised objections that “powers should not be lodged in the hands of a single director but instead should be entrusted to a multi-member board.”
“This decision is a win for our constitutional system of checks and balances, which is an essential protection of individual liberty,” Portman said. “I’m glad that the court recognized what I have called for since 2013, we need robust oversight to ensure the CFPB accurately represents the will of the people.”
Portman also led bipartisan legislation that would require independent agencies like the CFPB to do cost-benefit analysis of proposed regulations, which would be in line with requirements of the executive branch.