Justice Department Brief Challenging Consumer Bureau’s Independence Misses the Constitutional Mark

Sessions Goes to Bat for a Trump Administration Filled with Wall Street Insiders and Goldman Sachs Alumni


trs-400x225WASHINGTON, D.C. – Today, following news that the Justice Department has filed a brief in a major court case wrongly arguing that the Consumer Financial Protection Bureau’s (CFPB) structure is unconstitutional, Allied Progress released the following backgrounder and a statement from its executive director, Karl Frisch:

Trump’s Justice Department is dead wrong when it comes to the constitutionality of the Consumer Bureau. There are a number of government agencies similarly structured–even some were created by Republicans. What this is really about is a White House filled with Wall Street special interests and Goldman Sachs alumni who are sick and tired of seeing their friends held accountable when they violate the rights of hard-working American consumers.”

Millions of Americans have felt the impact of Richard Cordray’s work as the Consumer Bureau’s director. Under his leadership the CFPB has returned nearly $12 billion to 27 million Americans who have been wronged by credit card companies, payday lenders, debt collectors, and other predatory financial industries. Director Cordray’s work is a cause for celebration, not dismissal.”

To be clear, if President Trump moves to dismiss CFPB director Richard Cordray without cause, he will be overstepping his constitutional authority. Contrary to what Trump may think, this is not his reality show. He can’t just run around firing people.”

To speak to Karl Frisch about the Department of Justice’s attack on American consumers, please contact Mike Czin at 202-286-7654 or mczin@skdknick.com.

Background on Cordray and the Consumer Bureau

Trump Can’t Just Fire Cordray

There Is Not Cause to Dismiss Cordray

  • Under Director Cordray’s leadership, the CFPB has provided nearly $12 billion in relief to 27 million Americans in its first five years. Under his leadership the CFPB has also successfully resolved more than ninety enforcement cases against both big banks and small-time fraudsters. [Consumer Financial Protection Bureau, “Factsheet: Enforcing Federal Consumer Protection Laws,” July 13, 2016; Ben White and Andrew Hanna, “The Permanent Crisis in Banking,” Politico, October 6, 2016.]

# # #

Allied Progress is a nationwide, progressive advocacy organization that uses hard-hitting research and creative campaigns to hold Wall Street and powerful special interests accountable. Since launching in 2015, the organization has led high-profile campaigns on several issues including reforming the payday lending industry and exposing the those working to cripple the Consumer Financial Protection Bureau (CFPB).

Close

Join The Fight!

We need your help to hold powerful special interests accountable and empower hardworking Americans. Join our fight today!