Court ruling may defund top consumer financial protection regulator, but doesn’t change laws
When the Consumer Financial Protection Bureau (CFPB) was launched as part of a re-regulation policy package (Dodd Frank) post-2008 crisis, it was set up to be funded by the Fed instead of Congress.
This protects the CFPB from political processes as it fulfills its mandate to protect consumers. But three federal judges today ruled this funding structure is unconstitutional.
It’s a short term win in a long game by those seeking to declaw this consumer financial protection agency that oversees banks and lenders, but there are two takeaways for now:
1. The CFPB may appeal this ruling so it’s not over yet.
2. In the meantime, the CFPB’s rule-making and enforcement powers continue as normal so it’s business as usual for bank and lender compliance.
Three federal judges ruled Consumer Financial Protection Bureau funding by Fed instead of congress is unconstitutional. Now what?
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Check It Out:
– Appeals court says financial watchdog agency CFPB's structure is unconstitutional