Since the election of President Donald Trump, Warren has repeatedly clashed with the administration and its current, Trump-appointed director, Kathy Kraninger, who was appointed in 2018, over purportedly failing to live up to the agency's mission.
The Supreme Court in a ruling Monday allowed the Consumer Financial Protection Bureau to continue operating, but said that the director of the consumer watchdog could be removed by the president of the United States "at will".
"Such an agency lacks a foundation in historical practice and clashes with constitutional structure by concentrating power in a unilateral actor insulated from Presidential control", Roberts concluded.
Shugerman further argued that the Chief Justice's language could portend the court's decision as to whether President Trump will be able to keep his tax returns secret, highlighting the linguistic similarities used by Roberts with that of U.S. Solicitor General Noel Francisco when arguing that the president can limit investigations into his own conduct.
The portion of Roberts' opinion holding that the for-cause removal provision could be severed from the rest of the law was joined by Alito and Kavanaugh. "I respectfully dissent", Kagan wrote.
The high court's decision could also shine a new light on agencies overseen by boards or commissions that are structured with some measure of independence from the president, particularly the Federal Reserve, on which members are appointed to 14-year terms and are not removable by the president except for cause.
"The CFPB's structure has no foothold in history or tradition", wrote Chief Justice John Roberts.
The CFPB was the brainchild of MA senator and former Democratic presidential candidate Elizabeth Warren. The court left the agency largely intact, declining to rule that the flawed structure meant the entire CFPB and all the regulations needed to be shelved.
However, the court stopped short of more sweeping action, such as weakening its enforcement abilities or even abolishing the CFPB altogether, which has been a goal of many Republicans and the banking industry.
The court, in a 5-4 decision, stopped short of the much more drastic solution of invalidating the Consumer Financial Protection Bureau (CFPB), an agency that was the brainchild of MA senator Elizabeth Warren and was set up in 2011 under Democratic former president Barack Obama.
"In practice, the CFPB was created to prevent the American people, to the maximum extent possible, from exercising oversight over CFPB's sole director, who was granted vast authority over the financial lives of every American", she said.
The Supreme Court is seen in Washington, June 15, 2020.
The case is Seila Law LLC v. Consumer Financial Protection Bureau, 19-7.