Is the Consumer Financial Protection Bureau's Payday Lending Rule Invalid Because the Bureau Receives Its Budget from the Federal Reserve System, and Not a Direct Annual Appropriation from Congress?

[...]the comptroller general (a congressional officer) must conduct annual audits of the CFPB and submit reports to Congress. [...]the government says that this is wrong: "the CFPB's funding mechanism accords with Congress's longstanding practice of authorizing agencies to spend money...

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Bibliographic Details
Published in:Preview of United States Supreme Court Cases 2023-10, Vol.51 (1), p.8-12
Main Author: Schwinn, Steven D
Format: Article
Language:English
Subjects:
Appropriations
Banking law
Comptrollers
Congressional committees
Consumer protection
Consumers
Federal Reserve banks
Funding
Government agencies
Payday loans
Personal loans
Political aspects
Politics
Provisions
Regulatory agencies
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Summary:[...]the comptroller general (a congressional officer) must conduct annual audits of the CFPB and submit reports to Congress. [...]the government says that this is wrong: "the CFPB's funding mechanism accords with Congress's longstanding practice of authorizing agencies to spend money indefinitely from sources other than annual appropriations." [...]the government contends that the mechanism squares with statutes funding other financial regulators, like the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board. [...]the government argues that even if the CFPB's funding mechanism is flawed, the Fifth Circuit erred in vacating the Payday Lending Rule. The plaintiffs contend that this is especially problematic, because it is hard-wired into federal law, and because this unique funding mechanism gives the CFPB both appropriations power and executive power-"combining the purse with the sword in the most dangerous manner."
ISSN:0363-0048