On Wednesday, a federal appeals court determined that the Consumer Financial Protection Bureau (CFPB)’s mechanism for funding is unconstitutional.
Politico reports that the three-judge panel of the U.S. 5th Circuit Court of Appeals ultimately made the ruling based on the fact that the CFPB receives its funding through the Federal Reserve, rather than through legislation from Congress, thus violating the separation of powers in the Constitution dictating that Congress controls the government’s purse strings.
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