Welcome to The Hill's Business & Economy newsletter
{beacon}
Business & Economy
Business & Economy
The Big Story
Conservative justices split on CFPB ruling
The Supreme Court’s most conservative justices were divided this week over a decision to preserve the Consumer Financial Protection Bureau (CFPB), a key consumer watchdog agency.
Justices Samuel Alito and Neil Gorsuch dissented from the Supreme Court’s 7-2 vote upholding the agency’s funding mechanism as constitutional.
While most federal agencies receive funding through Congress’ government appropriations process, CFPB currently draws funds from the Federal Reserve System that its director has deemed “reasonably necessary to carry out.”
That funding mechanism has long made the CFPB a target of Republican attacks purporting lawmakers have too little control over the agency.
“Unfortunately, today’s decision turns the Appropriations Clause into a minor vestige,” Alito wrote. “The Court upholds a novel statutory scheme under which the powerful Consumer Financial Protection Bureau (CFPB) may bankroll its own agenda without any congressional control or oversight.”
The majority opinion, which sided with the Biden administration, was written by Justice Clarence Thomas, known as one of the Supreme Court’s most conservative justices. He was joined by Chief Justice John Roberts, conservative Justices Brett Kavanaugh and Amy Coney Barrett and the high court’s three liberals.
The justices’ decision caps a battle that marked the biggest legal threat to the CFPB since its establishment in the wake of the 2008 financial crisis to crack down on predatory lending and enforce consumer protection laws.
The challenge to its funding mechanism was brought by two lender trade associations and was backed by all the nation’s Republican state attorneys general.
Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.
The latest moves in some of Washington’s biggest lobbying battles:
A decade ago, a Republican committee chair investigating Washington’s biggest business advocacy organization would have been unthinkable. But times have changed: House Ways and Means Chair Jason Smith (R-Mo.) is probing the Chamber of Commerce, a major shift from the historically close alignment between the group and Republicans. The Hill’s Taylor Giorno has more here.
Essential Reads
Key business and economic news with implications this week and beyond:
Sen. Elizabeth Warren (D-Mass.) celebrated the Supreme Court’s Thursday decision to reject a GOP challenge to the Consumer Financial Protection Bureau’s (CFPB) funding structure.
Democrats and financial industry critics celebrated Wednesday after the Supreme Court rejected a challenge to the Consumer Financial Protection Bureau’s (CFPB) funding structure.
Republican and Democratic senators accused one another of playing partisan politics Thursday in their responses to reports of a toxic workplace culture at the Federal Deposit Insurance Corporation (FDIC).
A group of Democratic lawmakers in the House and Senate are calling on heads of the Treasury Department, Federal Reserve Board and other financial regulators to ensure equitable banking access for Muslim Americans and immigrants
Michael Cohen endured his roughest hours on the witness stand to date on Thursday as former President Trump’s hush money trial reached its 18th day. Read more
Сменившая образ Ивлеева появилась на презентации своего азиатского ресторана
Осужденный за срыв концерта Макаревича служит с позывным "Макаревич"
Бурятский Театр кукол Ульгэр в Улан-Улан-Удэ показал в Этнографическом музее народов Забайкалья перед детьми и родителями в семейный праздник сказку Колобок - Новости и Культура, Дети и Россия
Приглашенные солистки выступят в опере «Руслан и Людмила»
ЦСКА забрал кубок из Казани // Армейцы вернули себе титул чемпиона Единой лиги ВТБ
Бурятский Театр кукол Ульгэр в Улан-Улан-Удэ показал в Этнографическом музее народов Забайкалья перед детьми и родителями в семейный праздник сказку Колобок - Новости и Культура, Дети и Россия
Андрей Воробьев: около 110 новых магазинов «Магнит» построят в Подмосковье
Apocalyptica выложили кавер на Metallica «The Call Of Ktulu» на виолончелях
