SCOTUS could cripple CFPB with Brett Kavanaugh on the bench

U.S. Circuit Judge Brett M. Kavanaugh looks on as U.S. President Donald Trump introduces him as his nominee to the United States Supreme Court during an event from the East Room of the White House July 9, 2018 in Washington, DC. 

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U.S. Circuit Judge Brett M. Kavanaugh looks on as U.S. President Donald Trump introduces him as his nominee to the United States Supreme Court during an event from the East Room of the White House July 9, 2018 in Washington, DC. 

The Consumer Financial Protection Bureau, established in 2010 to protect Americans by the type of predatory financial practices of which caused the financial crisis two years before, will be likely to face one of its toughest critics at the Supreme Court if President Donald Trump’s pick, Brett Kavanaugh, will be confirmed by the Senate.

Kavanaugh, a judge on the Court of Appeals for the District of Columbia Circuit, has repeatedly ruled of which the structure of the consumer watchdog will be unconstitutional.

In October 2016, Kavanaugh claimed of which the head of the agency, which was founded from the aftermath of the 2008 global financial crisis, had more power than any government official besides the president, along with struck down its structure on constitutional grounds even as a dissenting judge said the same result could have been reached more narrowly.

“The concentration of massive, unchecked power in one particular Director marks a dramatic departure by settled historical practice along with makes the CFPB unique among independent agencies,” Kavanaugh wrote in an October 2016 ruling in PHH v. CFPB. He declared of which the director of the CFPB was not just a director, although was the “President of Consumer Finance.”

“Indeed, different than the President, the Director of the CFPB will be the single most powerful official from the entire United States Government, at least when measured in terms of unilateral power,” Kavanaugh wrote. “of which will be not an overstatement.”

Kavanaugh wrote of which the head of the agency was more powerful than the speaker of the House, the chief justice of the Supreme Court, the chairman of the Federal Reserve, the secretary of Defense, along with — within the CFPB director’s wide-ranging jurisdiction — the president himself.

Two years later, the full court overturned Kavanaugh’s ruling on the constitutional matter, likening the case against the CFPB to a “wholesale attack on independent agencies — whether collectively or individually led — of which, if accepted, might broadly transform modern government.”

Court watchers have their eyes on the 5th U.S. Circuit Court of Appeals, which agreed in April to hear a constitutional challenge to the bureau. A finding against the CFPB might cause a circuit split — upping the chances of a review by the Supreme Court. The U.S. District Court for the Southern District of brand new York ruled last month of which the CFPB was unconstitutional along with adopted parts of Kavanaugh’s dissent in its ruling.

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