Supreme Court Upholds CFPB Funding Structure; Four Justices Cite Historical Practice
The Supreme Court has upheld the funding structure of the Consumer Financial Protection Bureau (CFPB), affirming Congress's right to delegate financial oversight to the Federal Reserve. This decision maintains the CFPB's standing amidst ongoing debates about its jurisdictional timing and originalist interpretations. Four justices wrote separately to endorse reliance on post-Founding historical practice. The ruling has significant implications for financial institutions, including Credit Acceptance Corp and MoneyLion, which are currently under scrutiny. Despite the victory, criticisms persist regarding the effectiveness and wisdom of the CFPB's funding mechanism, especially given that the Federal Reserve currently has no profits to allocate.
Sources
The Wall Street Journal
From @WSJopinion: The Constitution allows the Federal Reserve’s profits to fund the CFPB. But the Fed has no profits, writes @HalScott_HLS. https://t.co/nhSR1NpQIQ https://t.co/nhSR1NpQIQ
Tim Carney The Supreme Court ruled last week that Congress, when it created the Consumer Financial Protection Bureau, had every right to delegate the power of the purse over to the Federal Reserve. That doesn’t mean it was a good idea. Republicans in Congress ought to introduce a bill to…
Curtis Bradley One issue in the SCt's recent decision upholding the CFPB’s funding structure was whether to rely on post-Founding historical practice. Four justices wrote separately to endorse such reliance. I provide a defense of that approach in my forthcoming book. https://t.co/AhoM7tbW5q
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