After TEN YEARS the Fifth Circuit finally kills off Lizzie "Wampum Woman" Warren.
...A court tossed out a regulation written by the Consumer Financial Protection Bureau for payday lenders last week, saying the agency’s funding was unconstitutional and that it, therefore, lacked the ability to curb the industry....--quoted at Ticker
The CFPB is funded by the Federal Reserve; its money is NOT appropriated by Congress. That makes the agency an un-Constitutional entity, of course. Exactly the way Wampum Woman wanted it.
...How the CFPB is funded, by the Federal Reserve instead of Congress, is the root of the problem. The design was intentional — to keep the agency free from political pressure. The court, however, said the funding was unconstitutional because the agency didn’t answer to the people or Congress.
“I believe the court’s decision on illegality of the CFPB funding mechanism is correct as is it’s governance structure,” said Bill Isaac, former head of the Federal Deposit Insurance Corp., who ran the bank regulator during the savings and loan crisis of the 1980s. “What that means in terms of the legality of past actions by the CFPB is difficult to predict.”...
Gee, that's too bad.
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