(Tea Party PAC) – Leftists have made it pretty clear that they despise government checks and balances, specifically the judicial branch of government. Sen. Elizabeth Warren (D-MA) is up in arms over a recent court decision that ruled the Consumer Financial Protection Bureau’s (CFPB) method of funding was unconstitutional.
The CFPB is funded directly from the Federal Reserve and bypasses Congress. This funding design was intended to protect the regulator, a brainchild of Sen. Warren, from democratically-elected politicians.
On Wednesday, a three-judge panel of the 5th US Circuit Court ruled that the CFPB lacks significant methods of accountability and violates the Constitution’s separation of powers.
In 2011, Congress ceded its power of the purse to the Bureau but according to the court, that move was unconstitutional.
The CFPB was established as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and Elizabeth Warren served as its’ engineer. She directly helped to establish the bureau and now she’s not happy that the pesky court system is picking on her pet.
“Congress’s decision to abdicate its appropriations power under the Constitution, i.e., to cede its power of the purse to the Bureau, violates the Constitution’s structural separation of powers,” the ruling read.
“While the great majority of executive agencies rely on annual appropriations for funding, the Bureau does not,” the ruling said. “Instead, each year, the Bureau simply requisitions from the Federal Reserve an amount ‘determined by the Director to be reasonably necessary to carry out’ the Bureau’s functions.”
The judges stressed the major issue is that the CFPB lacks accountability and oversight even in comparison to other self-funded bodies, such as the Federal Deposit Insurance Corp.
“Even among self-funded agencies, the Bureau is unique,” the ruling stated. “The Bureau’s perpetual self-directed, double-insulated funding structure goes a significant step further than that enjoyed by the other agencies on offer. And none of the agencies cited above ‘wields enforcement or regulatory authority remotely comparable to the authority the [Bureau] may exercise throughout the economy.’”
Further, the judges also ruled against a small-dollar lending policy that governed payday, vehicle title, and certain high-cost installment loans. The biggest issue, however, is the funding for the CFPB coming directly from the Federal Reserve rather than annual appropriations legislation like the vast majority of other federal agencies.
CFPB spokesperson Sam Gilford contended, “There is 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 CFPB will continue to carry out its vital work enforcing the laws of the nation and protecting American consumers.”
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
Meanwhile, Warren blasted the court’s decision on social media, calling it “lawless” and “reckless.” She also labeled the judges as “extreme right-wing” and claimed the CFPB has given back “billions of dollars to Americans by doing its job.”
Democrats can’t stand when the court system hands down rulings that go against their agenda, even when the court is in line with the constitution of the United States. As a matter of fact, they especially hate when court’s side the constitution over their partisan pursuits and desires.
We all remember the meltdown and outlandish rhetoric that came from the left after Roe v Wade. was overturned this summer. Democrats have been throwing tantrums over court rulings for years and will continue to do so because they can’t stand checks and balances.
Yet, somehow it’s Republicans that are the threat to democracy. No wonder Americans don’t trust the left and their lying media sycophants anymore.
Republicans applauded the court’s decision:
Congress should have never given up its appropriations power when establishing the CFPB. It needs the same Congressional oversight as every other government agency. This includes being funded through the normal appropriations process, not through the Fed. https://t.co/BtGnuKPy3w
— Senator Cynthia Lummis (@SenLummis) October 20, 2022
This is a welcomed & long-overdue ruling. The Fed never should have been tapped as a source of funding for the CFPB, especially when the Fed is suffering losses on its assets. https://t.co/DybAYQcAm3
— Senator Bill Hagerty (@SenatorHagerty) October 20, 2022
I’ve long argued that the CFPB should be subject to Congressional appropriations. As the Constitution requires, the people’s representatives shall determine how their tax dollars are spent. I’m glad to see the court agrees.
— Senator Pat Toomey (@SenToomey) October 20, 2022
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