Supreme Court will hear case challenging Consumer Financial Protection Bureau funding
The funding of the consumer watchdog by the Federal Reserve is the key issue in the case that the Supreme Court has agreed to hear.
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Signage at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C.
Andrew Kelly | Reuters
The Supreme Court on Monday agreed to hear arguments in a case that challenges the constitutionality of funding of the Consumer Financial Protection Bureau.
The order taking the case came four months after a federal appeals court ruled that the CFPB's funding mechanism was unconstitutional.
That ruling had called into question every order and other action issued by the consumer watchdog in its history.
The CFPB, which was created on the heels of the 2008 global financial crisis, is funded by the Federal Reserve, not Congress.
In its ruling in October, the U.S. Court of Appeals for the 5th Circuit said that the mechanism violated the Constitution and that the funding should have been appropriated by Congress from the U.S. Treasury.
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