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Exception Tracking Spreadsheet (TicklerTrax™)
Downloaded by more than 1,000 bankers. Free Excel spreadsheet to help you track missing and expiring documents for credit and loans, deposits, trusts, and more. Visualize your exception data in interactive charts and graphs. Provided by bank technology vendor, AccuSystems. Download TicklerTrax for free.

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SCOTUS rules on CFPB constitutionality

The Supreme Court, in a 5-4 decision delivered by Chief Justice John G. Roberts, Jr., has ruled that the CFPB's leadership by a sole director removable only for cause violates the separation of powers rule under the U.S. Constitution.

The Court ruled that the Bureau can continue operating, because the provision of the law providing for removal only for cause is severable, but the director must be removable by the president "at will." The earlier judgment of the Ninth Circuit Court of Appeals (in Seila Law LLC v. Consumer Financial Protection Bureau) that the CFPB's structure did not violate the separation of powers was vacated and remanded. The Ninth Circuit must now revisit the case but analyze it in light of the Supreme Court's decision.

Justice Kagan filed an opinion concurring in the judgment with respect to severability and dissenting in part, in which Justices Ginsburg, Breyer and Sotomayor joined.

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