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AGs of S.C., Okla. and Mich. Join Challenge of Dodd-Frank

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AGs of S.C., Okla. and Mich. Join Challenge of Dodd-Frank

From John O'Brien's article on LegalNewsline:

The suit challenges the constitutionality of the Consumer Financial Protection Bureau, which was created by the law and is headed by former Ohio Attorney General Richard Cordray.

"Its director is like a czar," CEI attorney Hans Bader said. "He is not accountable to anyone and can't be fired even if voters elect a president with different ideas about how to protect consumers."

Bader says a 1926 U.S. Supreme Court decision allows a president to fire department heads at will and the CFPB, unlike independent commissions, is covered by the rule because it is a single-leader agency not subject to collegial oversight.

"Unlike the Chairman of an independent agency like the SEC, who can be outvoted by fellow commissioners if he oversteps his authority, the CFPB's director is accountable to no one," Bader said.