{"id":1708563,"date":"2022-10-24T06:09:02","date_gmt":"2022-10-24T10:09:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1708563"},"modified":"2022-10-24T08:33:55","modified_gmt":"2022-10-24T12:33:55","slug":"republicans-should-use-fifth-circuits-cfpb-ruling-to-dismantle-it-once-and-for-all","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republicans-should-use-fifth-circuits-cfpb-ruling-to-dismantle-it-once-and-for-all\/","title":{"rendered":"Republicans Should Use Fifth Circuit\u2019s CFPB Ruling to Dismantle It Once and for All"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Frepublicans-should-use-fifth-circuits-cfpb-ruling-to-dismantle-it-once-and-for-all%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1708563&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/f3821fc2-b774-4fe4-bd94-8b323b1e2620-1110x740-1.jpg\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<div id=\"\">\n<p>As my colleague <a href=\"https:\/\/redstate.com\/nick-arama\/2022\/10\/19\/breaking-5th-circuit-just-delivered-a-decision-that-has-elizabeth-warren-throwing-a-hissy-fit-n645869\" target=\"_blank\" rel=\"noopener\">Nick covered last Wednesday<\/a>, the Fifth Circuit Court of Appeals found that the funding mechanism for the Consumer Financial Protection Bureau (CFPB) is unconstitutional <a href=\"https:\/\/www.wsj.com\/articles\/federal-appeals-court-finds-cfpbs-funding-method-unconstitutional-11666223136?mod=hp_lista_pos4\" target=\"_blank\" rel=\"noopener\">in a ruling<\/a> throwing out the agency\u2019s regulation on payday lenders.<\/p>\n<blockquote>\n<p>The decision, by a three-judge panel of the Fifth U.S. Circuit Court of Appeals in New Orleans, found the CFPB\u2019s funding structure violated the Constitution\u2019s doctrine of separation of powers, which sets the authority of the three branches of government. Congress has the sole power of the federal purse, and the bureau\u2019s funding structure undercuts that authority, the court said.<\/p>\n<\/blockquote>\n<p>As Nick also wrote, the ruling did not make Sen. Elizabeth Warren (D-MA) happy. Perhaps even more impacted is\u00a0Rohit Chopra, Biden\u2019s CFPB Director and Warren prot\u00e9g\u00e9 who has an ambitious agenda and has been <a href=\"https:\/\/redstate.com\/jenvanlaar\/2022\/07\/11\/while-biden-blunders-cfpb-director-rohit-chopra-is-working-to-massively-expand-the-regulatory-state-n590470\" target=\"_blank\" rel=\"noopener\">working behind the scenes to massively expand the regulatory state.<\/a> When Warren and her allies set up the bureau, they deliberately set it up with this funding mechanism to insulate it from oversight, and Chopra\u2019s the director she\u2019s been waiting for since the beginning, to shepherd her radical, socialist overhaul of the country\u2019s financial services industry \u2014 and they have a very broad view of what should be considered part of the financial services industry. Chopra and Warren also have a broad view of the width of the CFPB\u2019s \u201clane.\u201d<\/p>\n<p>For example, as I <a href=\"https:\/\/redstate.com\/jenvanlaar\/2022\/07\/11\/while-biden-blunders-cfpb-director-rohit-chopra-is-working-to-massively-expand-the-regulatory-state-n590470\" target=\"_blank\" rel=\"noopener\">wrote a few months ago<\/a>:<\/p>\n<blockquote>\n<p>In late May, the CFPB announced the establishment of the Office of Competition and Innovation, through which they\u2019re\u00a0<a href=\"https:\/\/www.jdsupra.com\/legalnews\/consumer-financial-protection-bureau-9167972\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.jdsupra.com\/legalnews\/consumer-financial-protection-bureau-9167972\/&#038;source=gmail&#038;ust=1657294942997000&#038;usg=AOvVaw0jHuU6ksZBsnKiKXF8MLzG\">starting to regulate and enforce competition\/antitrust matters<\/a>\u00a0\u2014 which is really the FTC\u2019s lane, but it enables Chopra to advance a policy and narrative that Biden and people like Sen. Amy Klobuchar are pushing \u2014 that the solution for the country\u2019s out-of-control inflation is to ramp up antitrust\/competition enforcement and expand its scope.<\/p>\n<\/blockquote>\n<p>Chopra\u2019s also been a fan of canceling student loan debt. In testimony <a href=\"https:\/\/www.ftc.gov\/system\/files\/documents\/public_statements\/1545768\/chopra_-_written_testimony_on_debt_collection_practices_9-26-19.pdf\" target=\"_blank\" rel=\"noopener\">before Congress in 2019<\/a>,<\/p>\n<blockquote>\n<p>\u201cHe criticized the federal government for enabling financial institutions to \u2018aggressively pursue borrowers by slamming their credit, levying hefty fees, and even humiliating them with their employer through wage garnishments.&#8217;\u201d<\/p>\n<\/blockquote>\n<p>He\u2019s also participated in <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2022\/10\/07\/readout-of-white-house-meeting-on-student-debt-relief-scam-prevention\/\" target=\"_blank\" rel=\"noopener\">recent White House meetings<\/a> related to the plan to cancel student loan debt.<\/p>\n<p>Wednesday\u2019s ruling could also affect the student loan cancellation scheme, given its funding mechanism. As <a href=\"https:\/\/hotair.com\/ed-morrissey\/2022\/10\/20\/fifth-circuit-torpedoes-cfpbs-self-financing-and-takes-aim-at-bidens-academia-bailout-n504608\" target=\"_blank\" rel=\"noopener\">Ed Morrissey wrote at Hot Air<\/a> Thursday morning:<\/p>\n<blockquote>\n<p>\u201cHowever, it\u2019s not the <em>only<\/em> example of such arrogance. In August, Joe Biden announced that he would unilaterally forgive student loans, committing several hundred billion dollars to buying it out without any authorization or appropriation from Congress. This decision sends a shot across Biden\u2019s bow on his Academia bailout, especially since at least one of the lawsuits against it will take place in the Fifth Circuit\u2019s jurisdiction in Texas.\u201d<\/p>\n<\/blockquote>\n<p>Sure enough, there were <a href=\"https:\/\/redstate.com\/bonchie\/2022\/10\/21\/joe-biden-suffers-major-loss-on-student-loan-forgiveness-scheme-n646819\" target=\"_blank\" rel=\"noopener\">plenty of developments later Thursday and on Friday<\/a> on that front. After Supreme Court Justice Amy Coney Barrett denied a Wisconsin taxpayer association\u2019s request for an injunction pending appeal in a case challenging Biden\u2019s Executive Order on Thursday, the Eighth Circuit Court of Appeals on Friday issued an administrative stay in separate case, preventing the administration from moving forward with its plans. In <a href=\"https:\/\/www.reuters.com\/markets\/us\/us-appeals-court-temporarily-blocks-bidens-student-loan-forgiveness-plan-2022-10-21\/?taid=635326d17a99c20001d419fb&#038;utm_campaign=trueAnthem:+Trending+Content&#038;utm_medium=trueAnthem&#038;utm_source=twitter\" target=\"_blank\" rel=\"noopener\">that case<\/a>,<\/p>\n<blockquote>\n<p>\u201cU.S. District Judge Henry Autrey in St. Louis ruled\u2026that while the six <a class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__large__nEccO link__underline_default__2prE_\" href=\"https:\/\/www.reuters.com\/legal\/government\/gop-led-states-urge-judge-block-bidens-student-loan-forgiveness-2022-10-12\/\" data-testid=\"Link\" target=\"_blank\" rel=\"noopener\">Republican-led states<\/a>\u00a0had raised \u201cimportant and significant challenges to the debt relief plan,\u201d he\u00a0<a class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__large__nEccO link__underline_default__2prE_\" href=\"https:\/\/www.reuters.com\/markets\/us\/us-supreme-courts-barrett-declines-block-biden-student-loan-relief-2022-10-20\/\" data-testid=\"Link\" target=\"_blank\" rel=\"noopener\">threw out their lawsuit<\/a> on grounds they lacked the necessary legal standing to pursue the case.\u201d<\/p>\n<\/blockquote>\n<p>Again, as Ed Morrissey writes:<\/p>\n<blockquote>\n<p><a href=\"https:\/\/redstate.com\/nick-arama\/2022\/10\/22\/watch-hilarious-babylon-bee-take-on-californians-canvassing-for-beto-in-texas-n647261\" target=\"_blank\" rel=\"noopener\">Judge Cory Wilson\u2019s logic<\/a> in dismantling the CFPB\u2019s autonomy clearly applies directly to the core issue in Biden\u2019s loan-forgiveness plan:<\/p>\n<p>\u201cDrawing on the British experience, the Framers carefully separate[d] the \u2018purse\u2019 from the \u2018sword\u2019 by assigning to Congress and Congress alone the power of the purse.\u201d <em>Tex. Educ. Agency v. U.S. Dep\u2019t of Educ<\/em>., 992 F.3d 350, 362 (5th Cir. 2021). 8 The Framers\u2019 reasoning was twofold. First, they viewed Congress\u2019s exclusive \u201cpower over the purse\u201d as an indispensable check on \u2018the overgrown prerogatives of the other branches of the government.\u2019 The Federalist No. 58 (J. Madison). Indeed, \u2018the separation of purse and sword was the Federalists\u2019 strongest rejoinder to Anti-Federalist fears of a tyrannical president.\u2019 Josh Chafetz, Congress\u2019s Constitution, Legislative Authority and the Separation of Powers 57 (2017)<\/p>\n<p>\u201cThe Framers also believed that vesting Congress with control over fiscal matters was the best means of ensuring transparency and accountability to the people.\u201d<\/p>\n<\/blockquote>\n<p>Judge Wilson\u2019s given plaintiffs who challenge the Biden student loan bailout a roadmap of the argument to make, particularly those plaintiffs whose challenges will be heard in the Fifth Circuit.<\/p>\n<p>As wonderful as it is that Wednesdays ruling may (should) have the secondary effect of torching the student loan bailout, Republicans need to keep their eye on Chopra and the CFPB and do more than clip its wings. Chopra\u2019s still <a href=\"https:\/\/archive.ph\/XFITH#selection-4095.0-4099.345\" target=\"_blank\" rel=\"noopener\">working overtime to overregulate<\/a>.<\/p>\n<blockquote>\n<p>The US Consumer Financial Protection Bureau released a sweeping report warning that the burgeoning \u201cbuy now, pay later\u201d industry needs fresh regulation to address industry practices.<\/p>\n<p>CFPB Director Rohit Chopra said he\u2019s ordered staff to identify surveillance policies in the industry that need to be curtailed, including the collection of consumers\u2019 purchase and demographic data for targeted ads. Buy-now, pay-later providers will also have to undergo supervisory examinations similar to those applied to credit-card companies.<\/p>\n<\/blockquote>\n<p>Chopra\u2019s still exerting outsized influence at FTC and FDIC, especially in the areas of antitrust and merger \u2013 areas in which even liberal economists like former Treasury Secretary Larry Summers <a href=\"https:\/\/www.promarket.org\/2022\/06\/06\/larry-summers-cautions-antitrust-regulators-against-broad-brush-policy\/\" target=\"_blank\" rel=\"noopener\">disagree with his stance<\/a>.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Rohit Chopra&#8217;s statement on the domestic systemically important bank resolution ANPR is \ud83d\udd25: <a href=\"https:\/\/t.co\/mgNIWDcaon\" target=\"_blank\" rel=\"noopener\">https:\/\/t.co\/mgNIWDcaon<\/a> <a href=\"https:\/\/t.co\/SvvU29qXVo\" target=\"_blank\" rel=\"noopener\">https:\/\/t.co\/SvvU29qXVo<\/a> <a href=\"https:\/\/t.co\/sSwOLr2trH\" target=\"_blank\" rel=\"noopener\">pic.twitter.com\/sSwOLr2trH<\/a><\/p>\n<p>\u2014 Jeremy Kress (@Jeremy_Kress) <a href=\"https:\/\/twitter.com\/Jeremy_Kress\/status\/1582420923629465603?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">October 18, 2022<\/a><\/p>\n<\/blockquote>\n<p>Validated by the Fifth Circuit ruling, Republicans in the next Congress (where they\u2019ll hopefully have a majority) need to, at a minimum, bring CFPB under the appropriations process. Both Sen. Pat Toomey (R-PA) and Rep. Patrick McHenry (R-NC), ranking members of the Financial Services Committees, have signaled that will happen. <a href=\"https:\/\/republicans-financialservices.house.gov\/news\/documentsingle.aspx?DocumentID=408460\" target=\"_blank\" rel=\"noopener\">McHenry stated Thursday<\/a>:<\/p>\n<blockquote>\n<p>\u201cAs Republicans have said all along, the CFPB\u2019s \u2018double-insulated,\u2019 independent funding mechanism is unconstitutional and makes it wholly unaccountable. I\u2019m glad to see the 5th Circuit recognize this fact. Bringing the CFPB under the appropriations process would make it more accountable to the American people through their elected representatives. The Financial Services Committee must consider Congressman Barr\u2019s TABS Act immediately to give the Bureau certainty regarding its funding.\u201d<\/p>\n<\/blockquote>\n<p>In my opinion, the best thing to do with its funding is to cut it altogether, as the bureau itself is unnecessary. If it\u2019s around much longer any efforts to ditch it will be likened to ditching Social Security or the Department of Education.<\/p>\n<\/div>\n<div>\n<p>\nTrending on Redstate Video\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As my colleague Nick covered last Wednesday, the Fifth Circuit Court of Appeals found that the funding mechanism for the Consumer Financial Protection Bureau (CFPB) is unconstitutional in a<\/p>\n","protected":false},"author":1,"featured_media":1708566,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1708563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1708563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1708563"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1708563\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1708566"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1708563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1708563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1708563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}