SoylentNews is people
SoylentNews
It's primary gimmick is the following: it isn't dependent on funding from US Congress. At one time, it even used to be independent of the US Executive Branch until a court ruling in 2016 that the US President could fire the head of the agency.
A three-judge panel on the 5th Circuit Federal Court of Appeals ruled this week that the CFPB's structure is unconstitutional because Congress has no control over the agency's budget, which is funded entirely by the Federal Reserve. Under the terms of Dodd-Frank, the CFPB is entitled to receive a budget totaling up to 12 percent of the Federal Reserve's annual operating expenses, and the Federal Reserve is not allowed to refuse the CFPB's requests for funding.
Now, that funding model has been used to reverse a ruling by the CFPB as unconstitutional with the potential to put all its rulings since formation into question on the same constitutional basis.
Why it matters: The reasoning behind the ruling, if upheld, could potentially invalidate all the rules enacted by the CFPB over its 11-year existence — including regulations underpinning the U.S. mortgage system.
This is one of the big reasons I oppose the passing of bad law even when it serves a concrete good. It can take a long time to fix the massive problems that such law brings.
And note that a key argument by the court was that there was no precedent for the CFPB's unconstitutional structure. If there had been other agencies with similar setups, this could have been very hard to overturn. Similarly, the CFPB is a precedent for future breaking of the US Constitution along these lines. Without the ruling, there would have been a stronger case for future misdeeds of this sort.
(Score: 0) by Anonymous Coward on Sunday October 23 2022, @01:43AM (3 children)
Full-of-himself smartass parent doesn't understand US govt. structure. He thinks Congress has to figure out what's Constitutional and what isn't. (Hint: that's Supreme Court's job).
Then when SCOTUS incorrectly makes laws (not their mandate), if said law is favored by libtards, then it's correct govt. functioning.
I tried to point out the fundamental flaw in his "thinking", but I guess I'm trolling (truth hurts, whiners downmod).
Tell smartass parent to challenge CFPB funding in court as unconstitutional, and appeal up to Supreme Court.
(Score: 1) by khallow on Sunday October 23 2022, @01:54AM (1 child)
Clue: it's everyone's responsibility to do that, not just some punks in the Supreme Court. I did it. When are you going to do it?
(Score: 0) by Anonymous Coward on Sunday October 23 2022, @11:55PM
No, my little fuzzy khallow, you did not. Thinking you have interpreted the Constitution is not the same as understanding the Constitution. Common Republican failure, for who things like the Constitution are magic words that you just have to recite, without any understanding. And, you are arguing in bad faith again, khallow. Strange that you can still find anyone willing to attempt to obviously rebut your take.
(Score: 1, Informative) by Anonymous Coward on Sunday October 23 2022, @02:16AM
Yeah, they are supposed to figure it out, before they pass a law, not just throw it out there and let the courts sort it out, that's lazy bullshit. We are supposed to elect people that know the law, at least the constitution. Since congress is supposed to control the purse, we can expect them to do so, and we need to demand more transparency. Of course, none of that will happen