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.
President Biden spoke with Russian President Vladimir Putin for the fourth time this year. Biden and Putin spoke for two hours about the massing of Russian troops and materials near the Russian border with Ukraine. Various outlets have reported that the U.S. has intelligence that Russia could be planning an invasion of Ukraine in the next few months. Both countries said the call was productive, but the situation remains tense.
Hagar Chemali, foreign policy expert and host of "Oh My World!" on YouTube, joins Cheddar Politics to discuss.
A recent Wall Street Journal poll indicated that Hispanic voters are up for grabs for the upcoming midterm elections, with 41 percent of respondents saying they would vote for Democrats and 44 percent for Republicans. Bryanta "Bre" Maxwell, a Democratic Strategist, former political director for Jaime Harrison's senate campaign, and principal and CEO of Indigo Consulting, LLC, joined Cheddar to break down the numbers and to dive into what this specific electorate is looking for as the balance of power in Congress hangs in the balance in 2022.
Vice President Kamala Harris received impressive amount of media coverage in January for making history. However, the media attention waned significantly and some are now even saying she has almost disappeared from public view. Reecie Colbert, founder of BlackWomenViews Media, joined Cheddar Politics to discuss more.
If you thought you heard the last of the Mueller report back in 2019, you'd be wrong. While the bombshell report was the biggest story in Washington for years, much of the report remained redacted. Our friends at BuzzFeed News weren't satisfied, so they sued to have certain passages unredacted. They notched another win when a federal appeals court ordered ten passages from the report to be released.
Matt Topic, BuzzFeed's attorney in the case, and Jason Leopold, reporter at BuzzFeed News, join Cheddar Politics to discuss.
The U.S. reported its first confirmed case of the omicron variant in California on Wednesday. Scientists and health officials are racing to understand the variant, with the WHO saying it's still too early to determine whether it's more contagious, more deadly or more resistant to vaccines than other variants. Omicron has pushed members of the WHO to commit to start talks over a "gobal pandemic treaty" for future pandemic preparedness.
Priti Krishtel, co-founder and co-executive director of the Initiative for Medicines, Access & Knowledge, joins Cheddar Politics to discuss.
Wednesday was not a good day for those who believe in abortion rights in this country as the Supreme Court heard arguments on a Mississippi abortion law that bans most abortions after 15 weeks of pregnancy. The majority of the court appears poised to roll back abortion rights, and the questions from the conservative justices seemed to indicate the law for nearly 50 years is likely to change.
Jessica Mason Pieklo, senior vice president and executive editor of Rewire News Group, joined Cheddar Politics to discuss Wednesday's hearing.
Michael Cohen, Donald Trump's former personal lawyer, has been busy since completing his prison sentence in November. He's getting into the NFT space, selling his federal prison badge and the original manuscript of his book "Disloyal" as NFTs. Cohen joined Cheddar to discuss his latest venture and why he thinks there is still much to be revealed about his case.
Jonathan Adler, Law Professor at Case Western Reserve University, joined Wake Up With Cheddar to discuss Tuesday's ruling and provide legal context to recent battles over vaccine mandates.
Carlo and Baker wrap up the week talking about the Biden economic boom that no one seems to notice, a verdict in the Jussie Smollett case, the first Starbucks union in America and the pleasures of the "dude nod."
