The Supreme Court said Monday it will take up a Republican-led challenge to the Consumer Financial Protection Bureau, a case that could threaten how the consumer watchdog agency functions. It is the second time in three years that the justices will be examining the federal agency, which was created in the wake of the 2008 financial crisis.
The case will not be heard before October. That's when the court begins its next term.
Late last year, a federal appeals court — the U.S. Court of Appeals for the 5th Circuit — ruled that the agency’s funding structure is unconstitutional, threatening its ability to function. The Biden administration asked the high court to review that decision, which it has now agreed to do.
The administration said the lower court’s ruling “calls into question virtually every action the CFPB has taken” since its creation. The decision “threatens to inflict immense legal and practical harms on the CFPB, consumers, and the nation’s financial sector,” the administration said.
Since the bureau was created more than a decade ago by the Dodd-Frank Act, it has varied in its aggressiveness. During the Obama administration, it used its muscle to collect fines from banks and credit card companies; during the Trump administration, it drastically scaled back enforcement actions. Republicans have argued that the agency has unchecked power.
The case the justices agreed to hear centers on the agency's funding. Unlike a majority of agencies, the CFPB does not get its funding from the annual budget process in Congress. Instead, it is funded directly by the Federal Reserve. The agency’s budget is capped at 12% of the total operating expenses of the Federal Reserve System. In the 2022 fiscal year, the agency received about $640 million.
The case the justices will hear began when two associations sued over the agency's Payday Lending Rule. They argued in part that the agency's funding structure violated the Constitution, improperly insulating the agency from congressional supervision. A trial court ruled against the associations, but the appeals court agreed the funding structure was unconstitutional. Other courts that had previously looked at the agency's funding structure found no issue.
In urging the justices to take the case, a group of 16 mostly Republican-led states called the CFPB “a failed experiment in administrative governance.”
Just three years ago, in 2020, the high court dealt with a different challenge to the agency. That case involved the agency's structure. The justices ultimately ruled that Congress had improperly insulated the head of the bureau from removal. The justices said the agency could continue to operate but that its director had to be removable by the president at will.
The CFPB was the brainchild of Sen. Elizabeth Warren of Massachusetts and former Democratic presidential candidate.
Members of Congress have voted to advance a bill meant to address antitrust concerns related to tech giants including Amazon, Apple, Google, and Meta. The 'American Innovation and Choice Online Act' is largely seen as one of the best chances for the government to reign in Big Tech's dominance
Seth Schachner, Managing Director StratAmericas; Digital Business Executive joined Cheddar's Opening Bell to discuss.
American semiconductor company, Intel officially announcing plans to build a new $20 billion chip manufacturing complex outside Columbus, Ohio. This comes as the global chip shortage continues to hamper production of everything from smart phones, to cars. Jennifer Smith - Logistics and Supply Chain Reporter, WSJ joined Cheddar's Opening Bell to discuss.
The U.S. has put more than 8,000 American troops on high alert for possible deployment to Eastern Europe as the West prepares for a potential Russian invasion of Ukraine. With Russia building up more than 100,000 troops near the Ukrainian border, concerns over the country's behavior are mounting. Joel Rubin, Former Deputy Assistant Secretary of State and President of the Washington Strategy Group, joined Cheddar to discuss what this means for U.S.-Russia relations, and where the conflict might be heading next.
As the midterm election looms, things aren't looking too promising for President Joe Biden. One year into his term as president, Biden is facing one of the lowest approval ratings of any modern-day president, threatening his party's control of the House in 2022. Brian Bennett, Senior White House Correspondent for TIME, joined Cheddar's Opening Bell to discuss.
A full one year into his term as President of The United States, President Biden addressed the nation on Wednesday, facing questions on everything from inflation to chip shortages and covid-19. As Biden enters his second year in office, he is facing one of the lowest approval ratings of any modern-day president. Kate Davidson, Reporter, POLITICO joined Cheddar's Opening Bell to discuss.
"Barbara Lee: Speaking Truth to Power" is the story of how the longtime House Democrat became, as she Is known to some, as "the Conscience of Congress." The film also
shows Representative Lee from her days working to fight community poverty to famously becoming the only member of Congress to vote "no" against the war in Afghanistan days after 9/11. The film is nominated for an NAACP Image Award, and Premieres on Starz on February 1. Film director Abby Ginzberg and Rep. Barbara Lee (D-Calif. 13th District), joined Cheddar to discuss more.
San Diego has just implemented a new law that could set the stage for how the country deals with food waste. This new law hopes to make a dent in that. Businesses and groceries stores out in San Diego will need to put a plan in place to *donate edible food rather than toss it straight to the trash. Food Rescue Manager at Feeding San Diego, Kate Garret
Earlier this month, New York City experienced one of the deadliest fires it has seen in decades. 17 people lost their lives in the Fordham section of the Bronx. This was due to a faulty space heater which reportedly began on the lower floor of the 120 unit building. Thanks to the F. D. N. Y. And heroic neighbors, many were able to get out in time. Unfortunately, the toxic smoke surged upwards through a safety door. Now, many advocates say negligence by policymakers and landlords has led to the deaths in black and brown communities from fires that honestly could have been preventable. Legislative Director of Citizen Action of New York, Rebecca Garrard, and the Chair of Journalism and New Media Studies at St. Joseph's College Theodore Hamm, joined Cheddar to discuss more.
The Supreme Court has declined to order the Texas Abortion case back to the original trial judge for further proceedings. Essentially if Texas abortion providers were able to get their case back to the lower court., It would have greatly helped the group move against the law. However, this decision is likely to prolong the case legal battle. Professor and Author of "The Turnaway Study: Ten Years, a Thousand Women, and the Consequences of Having — Or Being Denied — An Abortion", Diane Foster, joined Cheddar to discuss more.
The Supreme Court rejected yet another bid by abortion providers to block Texas's law - which bans most abortions after six weeks of pregnancy. This is the fourth time that advocates have tried and failed to block the most restrictive abortion ban in the country. Leah Litman, assistant professor of law at The University of Michigan and co-host of the "Strict Scrutiny" podcast, joins Cheddar News to discuss.
