Federal court decides against consumer watchdog agency

On Tuesday, a federal appeals court ruled that the way the Consumer Financial Protection Bureau is set up is unconstitutional. The court decided against the CFPB and in favor of the mortgage firm PHH. The details of that company and its case are perhaps less important than what the U.S. Court of Appeals for the District of Columbia Circuit said broadly about the CFPB, the consumer watchdog agency created after the financial crisis.

The court said the bureau can continue its work, but it’s unconstitutional for it to have a single director who can only be removed by the president for cause. The court said the president should be able to remove the director at will.

Click the audio player to hear about this ruling in the context of the long political fight over the CFPB.