Warren blasts federal court's decision striking down the funding mechanism for a student-loan

[Yo_Mama_Been_Loggin]

industry watchdog

A court shaped by Republicans just ruled against a key consumer agency Massachusetts Sen. Elizabeth Warren helped shape.

On Wednesday, the Fifth Circuit Court of Appeals ruled that the Consumer Financial Protection Bureau (CFPB)'s funding structure is unconstitutional because the Federal Reserve funds the agency, rather than requiring funding approval through Congressional legislation.

Under former President Barack Obama, Warren helped create the CFPB with the key idea that it would function as an independent agency without political influence so it could conduct oversight as effectively as possible, and this ruling could fundamentally change that.

"This is a lawless and reckless decision," Warren wrote on Twitter. "@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://www.msn.com/en-us/news/politics/elizabeth-warren-blasts-a-federal-court-s-lawless-and-reckless-decision-striking-down-the-funding-mechanism-for-a-top-student-loan-industry-watchdog/ar-AA13bNIg

[Volaris]

1. Ok, questions:

Who funds the FBI? Is it Congress, or the DOJ?
Because if they're BOTH supposed to be operating independently, isn't the Fed structurally the same as the DOJ, in constitutional terms?

[LymphocyteLover]

3. Or for many govt departments, doesn't the dept have discretion over what subagencies they fund?

[Zeitghost]

10. It's not the same

The Federal Reserve is not technically a part of the federal government. It is owned by large nationally chartered banks but controlled by political appointees at the national level and by political and private appointees at the regional level.

[Volaris]

11. Ok thank you!

[LymphocyteLover]

2. This is insane. Is the 5th circuit the horrible conservative court that rules for Texas a lot?

[LymphocyteLover]

5. comment from the CFPB from the article

"A spokesperson for the agency said in a statement that there's "nothing novel or unusual about Congress's decision to fund the CFPB outside of annual spending bills."

"Other federal financial regulators and the entire Federal Reserve System are funded that way, and programs such as Medicare and Social Security are funded outside of the annual appropriations process," the spokesperson said."

[CrispyQ]

7. Is this a way to get SS/Medicare declared unconstitutional? -nt

[LymphocyteLover]

9. I'm sure those lunatics will try it soon

[Hermit-The-Prog]

4. Moscow Mitch has effectively subverted the Judicial branch.

[LymphocyteLover]

6. and these exteremists are subverting our entire govt

[crickets]

8. K&R for visibility.