Why the financial industry is celebrating a Supreme Court ruling — for now


In a 5-4 decision, the Supreme Court on Monday ruled that the president can fire the head of the Consumer Financial Protection Bureau "at will." That's seemingly a victory for the financial industry, which has been locked in a never-ending tug-of-war with the CFPB since it was established in 2010, but the celebration may not last forever, HuffPost reports.
Prior to the ruling, the CFPB director could only be fired for cause, namely "inefficiency, neglect of duty, or malfeasance in office." The reason behind the distinction is that the post comes with a 5-year term, which means the director could serve under the president of a different party, so the for-cause rule makes it more challenging for a president to terminate the director for partisan, political reasons. But in response to a lawsuit, the court decided the restrictions violate the constitutional authority bestowed upon the executive branch.
In the short-term, the financial industry — which saw the CFPB return $12 billion to defrauded consumers between 2010 and 2016 — is likely on board with the decision, but there's a catch. The current CFPB Director Kathy Kranninger, who was appointed by President Trump, is considered a defender of the financial sector. If Trump loses to the presumptive Democratic nominee, former Vice President Joe Biden, in November, Biden will now have a lot more leeway to make a change. Tim O'Donnell
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
Today's political cartoons - April 19, 2025
Cartoons Saturday's cartoons - free trade, judicial pushback, and more
By The Week US
-
5 educational cartoons about the Harvard pushback
Cartoons Artists take on academic freedom, institutional resistance, and more
By The Week US
-
One-pan black chickpeas with baharat and orange recipe
The Week Recommends This one-pan dish offers bold flavours, low effort and minimum clean up
By The Week UK
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
By Peter Weber, The Week US
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
By Justin Klawans, The Week US
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
By Peter Weber, The Week US
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
By Peter Weber, The Week US
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
By Peter Weber, The Week US
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US