Consumer Financial Protection Ruling Is Illogical: Noah Feldman

Conservatives have never liked the Consumer Financial Protection Bureau, the brainchild of Massachusetts Senator Elizabeth Warren. Now a conservative panel of the conservative US Court of Appeals for the Fifth Circuit has struck down the CFPB’s rulemaking authority using a novel theory.

The court held that the mechanism Congress established to fund the bureau through the Federal Reserve is unconstitutional — even though it’s effectively the same as the mechanism used to fund the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration and the Federal Housing Finance agency, not to mention the Fed ...