Many Democrats see the case as part of a broad-based attack on the regulatory state by Republicans eager to bring challenges before the Supreme Court.
Sen. Elizabeth Warren , who is credited with conceiving the agency that was created in the wake of the 2008 financial crisis before she became a senator, said the CFPB’s political independence was critical to its formation. | Manuel Balce Ceneta/AP PhotoDemocrats who created the Consumer Financial Protection Bureau a decade ago thought they could shield the agency from political pressure by funding it through the Federal Reserve instead of Congress.
Warren, who is credited with conceiving the agency that was created in the wake of the 2008 financial crisis before she became a senator, said the CFPB’s political independence was critical to its formation. Republicans and financial industry critics, many of whom have opposed the bureau since its inception, argue that the funding scheme allows the agency to escape accountability.
The CFPB was created by the Dodd-Frank Act, the landmark 2010 law that rewrote the rules of finance. The funding mechanism set up by Obama-era Democrats allows the bureau to request the amount of money it needs each year from the Fed, which, in turn, is funded by fees it levies on financial institutions and interest on the securities it holds. The CFPB automatically receives the requested amount, subject to a cap set by Congress.
The government maintains that Congress’s decision to authorize the Fed to fund the agency up to a fixed level amounts to “a standing, capped lump-sum appropriation,” as Solicitor General Elizabeth Prelogar wrote “A decision invalidating the CFPB’s past actions would be deeply destabilizing” and “threaten profound disruption for consumers, regulated businesses, and the nation’s financial markets,” Prelogar said in the brief.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How the Supreme Court could bail out Bob MenendezIn a string of recent decisions, the justices have made it more difficult to prosecute public officials for corruption.
Read more »
Voter support for Supreme Court ethics reform is high amid spate of critical storiesA new survey sheds new light on the changes the public most wants for the judiciary.
Read more »
Opinion: New Supreme Court term will feature women’s rights issuesWill court push back against government’s role in expanding equality and lifting the disadvantaged?
Read more »
Supreme Court will decide if Texas and Florida can regulate social media to protect 'conservative speech'Florida and Texas seek to regulate social media sites they say are biased against conservatives. Will the Supreme Court allow them?
Read more »
How colleges brazengly get around Supreme Court’s affirmative action rulingIt’s a clever loophole: ask about race… without expressly requiring students to write about their race.
Read more »