The Fifth Circuit Court of Appeals just threw a major blow at Sen. Elizabeth Warren (D-MA), brainchild via the 2010 Dodd-Frank legislation. Republicans have been opposed to it for years. They claim that the bureau was transparently set up and can be viewed at any time.
The Fifth Circuit recently ruled that the Consumer Financial Protection Bureau’s (CFPB’s) funding mechanism wasn’t constitutional.
Congress’s decision not to exercise its appropriations power under the Constitution violates the Constitution’s structural separation. A panel of three judges from the U.S. Circuit Court of Appeals ruled in favor of the 2017 payday lending rule of CFPB. This decision was made in a case brought before it by a payday lender group.
They were delegating something that was not their responsibility, namely their ability to exercise.
Judge Cory Wilson stated Wednesday, “The Bureau was unique among self-funded agencies. ”
This is a great choice because we know that giving power to unaccountable bureaucracies, which Democrats love to do, especially when they control the bureaucracies, ends up being a bad decision.
It is likely that it will be appealed again.
It looked like Republicans had already accepted the decision and were preparing to retake oversight. Rep. Tom Emmer (R-MN)
The Fifth Circuit rules that the CFPB, created by Elizabeth Warren via the Dodd-Frank Act, is unconstitutional and must be brought under congressional appropriations. Fortunately, @FinancialCmte has a plan for that. pic.twitter.com/gumKXNNxd2
— Tom Emmer (@RepTomEmmer) October 19, 2022
Warren has a fit, which is a good sign.
This is a lawless and reckless decision. @CFPB has returned billions of dollars to Americans by doing its job, and its funding is clearly constitutional. Extreme right-wing judges are throwing into question every rule the CFPB enforces to protect consumers and businesses alike. https://t.co/rktOfC46R5
— Elizabeth Warren (@SenWarren) October 19, 2022