As the Supreme Court agreed to rule on the Consumer Protection Financial Bureau’s (CFPB) “for cause” provision, which requires the President to provide evidence of poor performance before firing a CFPB director, experts debate whether the ruling will have impact on the FHFA. Most believe that there is enough of a difference between the two agencies that it cannot be assumed that a ruling regarding the CFPB would be implemented for the FHFA. Others argue that a ruling in the CFPB-focused case could allow for a quick and similar ruling regarding FHFA. “If the Supreme Court holds that the structure is unconstitutional and addresses the legality of past acts, then most lawyers would be looking to apply the lessons of that case to FHFA,” said Jeffrey Naimon, a partner at Buckley LLP.
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