Appeals court will reconsider ruling on consumer agency

AP News
Posted: Feb 16, 2017 12:47 PM

WASHINGTON (AP) — A federal appeals court will reconsider its earlier ruling that the government's consumer finance watchdog agency has an unconstitutional structure.

A divided three-judge panel had ruled in October that the way the Consumer Financial Protection Bureau is organized violates the Constitution's separation of powers by limiting the president's ability to fire the agency director.

But the full U.S. Court of Appeals for the District of Columbia said Thursday it would grant a request from the bureau to throw out that ruling and hear arguments in the case again on May 24.

The earlier 2-1 ruling was a victory for the banking industry, which has viewed the bureau as a thorn in its side and accused it of overreaching in its regulation of consumer financial activities.