A sign at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, DC
Andrew Kelly Reuters
WASHINGTON — More than 140 current and former Democrats have filed complaints. court outline A lawsuit was filed in the Supreme Court on Monday to defend the country’s leading consumer protection agency against regulatory challenges.
A brief led by Democratic Senators Sherrod Brown (Ohio) and Rep. Dissent and undermine it. its funding and empowered authorities;
Mr. Brown is chairman of the Senate Banking Committee, and Mr. Waters is a senior member of the House Financial Services Committee.
Upholding a Court of Appeal decision that undermined the Agency’s funding mechanism “endangers the funding model that has been in use since the early days of the Republic, which is now being applied to the state.” ” [Office of the Comptroller of the Currency] And there are many other important federal programs,” the lawmakers wrote.
Democratic House Minority Leader Hakeem Jeffries and Senate Majority Leader Chuck Schumer (both New York), Senate Majority Leader Dick Durbin (D-Illinois), Speaker Emeritus Nancy Pelosi (California) state, Democratic) is among the 144 incumbents and former members of Congress. Lawmakers signing the memorandum.
10 consumer advocacy groups filed a court brief This month, he filed a lawsuit in the Supreme Court in favor of the CFPB.
In February, four months after a federal appeals court panel unanimously ruled that the CFPB’s funding practices were unconstitutional, the Supreme Court agreed to hear the case’s arguments.
According to the brief, Congress cites “necessary independence from unpredictable annual funding cycles” as the CFPB, which was created by the Dodd-Frank Act of 2010 after the 2008 financial crisis. decided to fund it.
The CFPB sidesteps the annual appropriations process, but its director needs to justify its budget to the House of Representatives semiannually, lawmakers wrote, and Congress has no control over the Federal Reserve’s earnings. It uses some to cap the CFPB’s annual budget at a “modest” level.
In an October ruling, Judge Corey Wilson, a member of the three-judge panel of the Court of Appeals for the Fifth Circuit, called the funding mechanism “a multitude of independent executive agencies throughout the federal government. It is a unique scheme that spans the
The Biden administration appealed the Fifth Circuit’s ruling to the Supreme Court, but a final ruling could be postponed until June 2024 to review other arguments in the lawsuit. Lawmakers simply concluded in their brief that “the verdict should be overturned.”