Defund the …. Finance Cops?
A new decision from an appeals court might take federal investigators off the consumer protection beat.
Landwebs
A decision from an appeals court might take federal investigators off the consumer protection beat. Contradicting precedent, The Fifth Circuit of Appeals ruled in Community Financial Services v. CFPB that the federal Consumer Financial Protection Bureau’s funding structure violates the constitution’s separation of powers requirements. The decision may tee up the Supreme Court to dismantle a finance regulator meant to protect Americans from predatory actors, abuse and fraud, Matt Ford argues for The New Republic’s Soapbox.
The CFPB is the main agency enforcer for many consumer-finance laws, and, as a financial regulator, its self-funded structure is in good company with agencies like the Federal Reserve and Federal Housing Finance Agency, but the Fifth Circuit Court of Appeals panel argues CFPB is different. Read more of Ford’s analysis of the decision and the CFPB’s role here.
