“The multi-member structure reduces the risk of arbitrary decision-making and abuse of power and thereby helps protect individual liberty,” he wrote.
Kavanaugh rejected a chance to close the agency, but instead ruled that the president would have the power to dismiss Cordray in the same way a cabinet member can be fired. Under the 2010 financial regulation law which established the agency, Cordray can only lose his job for what is known as cause, such as neglecting his work.
The Senate confirmed Cordray to a five-year term in 2013 with both Sen. Sherrod Brown, D-Ohio, and Sen. Rob Portman, R-Ohio, voting in favor his nomination. Senate Republicans, however, had pushed for the agency to be directed by a five-member board instead of a single director.
Cordray is considered a potential Democratic gubernatorial candidate in Ohio in 2018. A spokeswoman for the agency said bureau officials are considering an appeal, adding that as “the court expressly recognized, the bureau will continue its important work.”
(Jessica Wehrman of the Washington Bureau contributed to this story.)