Yesterday The Washington Examiner reported that the Supreme Court has agreed to take up a dispute over the constitutionality of the Consumer Financial Protection Bureau in a case that could dramatically scale back the agency’s authority to police financial markets or eliminate it altogether. The Consumer Financial Protection Bureau (CFPB), considered to be the brainchild of Senator Elizabeth Warren, was created in 2010. It was one of a few misdirected responses to the housing bubble that burst in 2008.
Just for the record, I want to review a few facts about the financial collapse of 2008 that the mainstream media somehow missed.
The following video was posted at YouTube in September 2008. The video was essentially a campaign ad, but the information in it is important. The CFPB never addressed the actual problem. (For that matter, neither did Dodd-Frank). The video below tells a story you might not be familiar with:
The article reports:
The court said Friday it will hear a challenge from a California-based law firm that argues the CFPB, the brainchild of Sen. Elizabeth Warren, a Massachusetts Democrat, is unconstitutionally structured.
Opponents of the CFPB, created in 2010, argue that its structure violates the separation of powers, as Congress gave it broad authority to regulate mortgages, credit cards, and other consumer products, and is helmed by a single director who can’t be removed by the president except for cause.
The court said it will also address whether the entirety of the law that created the CFPB, the Dodd-Frank Wall Street Reform and Consumer Protection Act that re-ordered the financial regulatory system, should be struck down.
The Trump administration said in a filing with the Supreme Court it concluded the “statutory restriction on the president’s authority to remove the director violates” the Constitution, and “the director of the bureau has since reached the same conclusion.”
Trump tapped Kathy Kraninger to replace Mick Mulvaney, the acting CFPB director, last year.
Congress set up the CFPB as part of the Dodd-Frank financial reform package, and its director is appointed by the president and confirmed by the Senate. The director serves a term of five years.
Cases challenging the constitutionality of the agency have been weaving their way through the lower courts. In 2016, Justice Brett Kavanaugh, then a judge on the U.S. Court of Appeals for the District of Columbia Circuit, said in a ruling in a similar case the CFPB is a “gross departure from settled historical practice.”
Stay tuned. A decision is expected by the end of June.