Banking Regulators See Relief From Funding Fights in CFPB Ruling

In upholding the Consumer Financial Protection Bureau’s funding mechanism, a quartet of US Supreme Court justices across the ideological spectrum made clear they would take a similar stand in any challenge involving other financial regulators.

A ruling against the CFPB’s independent funding, which comes through the Federal Reserve instead of yearly congressional appropriations, could have exposed the Fed itself, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency to suits over their own funding arrangements.

The high court, in a 7-2 opinion on May 16, held the CFPB’s funding is constitutional. In a concurring opinion, ...