{"id":1708791,"date":"2022-10-24T11:17:29","date_gmt":"2022-10-24T15:17:29","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1708791"},"modified":"2022-10-24T11:18:00","modified_gmt":"2022-10-24T15:18:00","slug":"court-ruling-on-federal-financial-watchdog-is-another-blow-for-unconstitutional-bureaucratic-agencies","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/court-ruling-on-federal-financial-watchdog-is-another-blow-for-unconstitutional-bureaucratic-agencies\/","title":{"rendered":"Court Ruling On Federal Financial \u2018Watchdog\u2019 Is Another Blow For Unconstitutional Bureaucratic Agencies"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/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%2Fcourt-ruling-on-federal-financial-watchdog-is-another-blow-for-unconstitutional-bureaucratic-agencies%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=1708791&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--><p>In 1925, President Calvin Coolidge said that \u201cgovernment control cannot be divorced from political control.\u201d That piece of his governing philosophy put Coolidge at odds with the progressives of his own day, who believed a neutral, technocratic government was not only possible but desirable.<\/p>\n<p>Their modern-day descendants have had their wish fulfilled, in part, through the Consumer Financial Protection Bureau (CFPB). Created under the Dodd-Frank Act of 2010 in response to the credit crisis of 2008-09, the agency was tasked with consumer protection in the nation\u2019s financial sector. There were already a handful of agencies that did this, but what made the CFPB especially beloved on the left was that it was insulated from political pressure.<\/p>\n<p>That is to say, it governed without answering to the people or their elected representatives in any serious way.<\/p>\n<p>If that sounds disturbing to you, you\u2019re not alone. Concerned citizens immediately challenged the part of the law that said the agency\u2019s head could not be removed by the president except \u201cfor cause,\u201d an unusual level of unaccountability in a republic. In 2020, the Supreme Court agreed, holding in <a href=\"https:\/\/www.supremecourt.gov\/opinions\/19pdf\/19-7_n6io.pdf\"><em>Seila Law LLC v. CFPB<\/em><\/a> that Congress could not limit the president\u2019s power to appoint and dismiss executive branch officials.<\/p>\n<p>The CFPB is at odds with our republican form of government in another way, which came to the forefront in a Fifth Circuit Court of Appeals decision this week in <em>Community Financial Services Association of America v. CFPB<\/em>: the bureau receives its funding directly from the Federal Reserve, bypassing Congress\u2019s power of the purse.<\/p>\n<p>As Judge Cory Wilson noted in <a href=\"https:\/\/www.ca5.uscourts.gov\/opinions\/pub\/21\/21-50826-CV0.pdf\">the Oct. 19 opinion<\/a> (quoting <em>Seila Law,<\/em>) \u201cEach year, the Bureau simply requests an amount determined by the director to be reasonably necessary to carry out the agency\u2019s functions. The Federal Reserve must then transfer that amount so long as it does not exceed 12 percent of the Federal Reserve\u2019s total operating expenses.\u201d (internal quotes and citations omitted).<\/p>\n<p>The left\u2019s dream agency \u2014 and the vision of its most prominent advocate, Elizabeth Warren \u2014 was designed to have a director who could not be fired and a budget that could not be cut. Whatever other excesses the administrative state had reached before this, they at least were ultimately accountable to the president in the leadership and to Congress in their budget. Warren and the progressives designed the CFPB to avoid even those notional controls, creating what critics rightly called a \u201cfourth branch\u201d of American government.<\/p>\n<p>The funding mechanism was one of several objections the plaintiffs raised in the case, and the court agreed that it was unconstitutional, violating the Appropriations Clause of Article I, which holds that \u201cNo money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law\u201d.<\/p>\n<p>Quoting from James Madison\u2019s explanation of the spending power in \u201c<a href=\"http:\/\/federali.st\/48#p6\">Federalist No. 48<\/a>,\u201d the court notes that \u201cthe legislative department alone has access to the pockets of the people.\u201d Historically, this made Congress the most powerful of the three branches. In the days<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Fifth Circuit took a hammer to Democrats&#8217; attempt to insulate their pet programs from the voters in our democratic republic.<\/p>\n","protected":false},"author":534,"featured_media":1708794,"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":[546],"tags":[],"class_list":["post-1708791","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist"],"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\/1708791","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\/534"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1708791"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1708791\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1708794"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1708791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1708791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1708791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}