Chairman Hensarling Questions the Legality of CFPB Funding
Commentary by Scott Cammarn
In a letter to Federal Reserve Board ("FRB") Chairman Bernanke, House Financial Services Committee Chairman Jeb Hensarling calls into question the recent transfer of funds from the Federal Reserve to the Consumer Financial Protection Bureau ("CFPB").
View letter in full here (links externally to House Financial Services website).
Commentary
Scott Cammarn
While the letter from Chairman Hensarling was perhaps motivated in part by partisan concerns, it illustrates the uncertainties regarding the validity of the CFPB's regulatory and administrative actions. These uncertainties will persist until the legality of the recess appointment of Director Cordray is ultimately resolved.