Warren was the agency's first director.
"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". That structure could leave a new president with a director chosen by the previous president for some or all of the new president's time in office.
Kathy Kraninger, the current director of the consumer watchdog, said the ruling brought certainty to its mission of protecting consumers, while being held fully accountable to the president.
"The agency may therefore continue to operate, but its director, in light of our decision, must be removable by the president at will", Roberts wrote for the 5-4 court.
The court, in a 5-4 decision, stopped short of the much more drastic solution of invalidating the Consumer Financial Protection Bureau (CFPB), an agency that was the brainchild of MA senator Elizabeth Warren and was set up in 2011 under Democratic former president Barack Obama. Lawmakers, attempting to give the bureau a buffer from political influence, said the director could only be removed by the president for "inefficiency, neglect of duty, or malfeasance in office".
"The Supreme Court's decision to team up with Donald Trump to destroy the Consumer Finance Protection Bureau is a titanic outrage", said Rep. Pascrell, who voted to create the CFPB.
The ruling could have far-reaching implications for dozens of agencies including the FHFA.
Richard Hunt, president of the Consumer Bankers Association, said the recent ruling could lead to radical shifts in the financial services industry with each administration.
The prevailing party, Seila Law, responded to the CFPB's civil investigative demand by challenging its structure.
The justices ruled in favor of California-based law firm Seila Law LLC, which challenged the agency's structure after being investigated by it. The Constitution vests the power of the executive branch exclusively in the President without any limitation on his ability to remove leaders of executive agencies. In one of those cases, before the U.S. Court of Appeals for the District of Columbia Circuit, then-Judge Brett Kavanaugh, now a justice on the Supreme Court, dissented from an en banc decision in favor of the CFPB. Trump appointed CFPB critic Mick Mulvaney, Trump's former chief of staff, to oversee the agency.
The agency flexed its muscle under Cordray during the Obama years.
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. Now, if Joe Biden wins, he can fire her in January 2021 and replace her with an actual consumer advocate.