The news: New Orleans-based 5th U.S. Circuit Court of Appeals ruled the Consumer Financial Protection Bureau’s (CFPB) funding structure unconstitutional, per Banking Dive.
A divided response: In most cases, federal agencies are funded by annual appropriations from Congress. This ruling hinges on the CFPB receiving its funding from the Federal Reserve, which isn’t funded via appropriation. The court’s verdict has essentially stripped the CFPB of its enforcement authority.
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