Breaking: Supreme Court Of The United States Will Soon Be Hearing Arguments On The Legitimacy Of Consumer Financial Protection Bureau

Credits: SCOTUS, Alex Wong

The Supreme Court of the United States will now be hearing arguments in the lawsuit against the agency, Consumer Financial Protection Bureau, created by the Democratic Senator, Elizabeth Warren, after the 2008 market downfall. 

According to the Fox News report:

“The issue before the court is how the CFPB is funded – the financial watchdog agency bypasses typical congressional appropriations and simply requires the CFPB director to make requests to the Treasury Department for funds as needed. The banking industry parties challenging the CFPB say that is unconstitutional, citing the Appropriations Clause of the Constitution.”

The three-judge panel from the U.S. Court of Appeals for the 5th Circuit gave their decision in October 2022 and stated that the financing system breached the constitution and that the Consumer Financial Protection Bureau’s financing should be allocated by Congress from the United States Treasury. 

In the panel’s ruling, Judge Cory Wilson wrote: 

“The Bureau’s funding scheme is unique across the myriad independent executive agencies across the federal government.

It is not funded with periodic congressional appropriations.”

The Biden administration pleaded the verdict to the U.S. Supreme Court and verbal explanation will most probably begin with a ruling, in next year’s fall. 

The Fox News report added: 

“The Obama-era CFPB was formed in the aftermath of the 2008 market crash in an effort to protect consumers from financial schemes, with the authority to regulate banking and lending agencies via federal rules. Warren, now a Democrat senator from Massachusetts, is credited for creating the agency, although she never led it. Warren’s 2020 presidential campaign website says she ‘came with the idea for the CFPB before the crisis even began and then fought successfully to turn her idea into a reality,’”

Leave a Reply