The agency has been attacked in court as unconstitutional, and Trump has announced the federal government will stop defending that suit.
https://www.washingtonpost.com/news/...=.76bf63a1580bThe Justice Department will not support the Consumer Financial Protection Bureau in a monumental court battle over whether the structure of the federal watchdog is unconstitutional, according to court documents filed Friday.
The department also argued that the president should be able to remove the director of the independent agency at will, a shift that consumer advocates say could threaten the independent nature of the CFPB.
This agency, funded by the Federal Reserve, has returned over $11 billion to consumers since its creation in 2008. The question of constitutionality pertains to the agency's structure.
Donald Trump Targets CFPB, Which Returned $11.8 Billion to Consumers | Fortune.comRepublican leaders have long tried to check the CFPB, arguing that the agency is flawed, too powerful and not accountable to elected officials. Currently, the bureau is funded by the Federal Reserve, and therefore doesn't report to elected leaders. Most recently, Senators Ben Sasse (R-NE) and Mike Lee (R-UT) called for replacing the director of the CFPB with a multi-member panel that can be controlled by Congress.
"Director [Richard] Cordray has vigorously supported the unconstitutional independence of the CFPB," Lee said in an early January statement."Considering the damage CFPB has done to credit unions and community banks, President Trump should act quickly to remove the director."
Without the CPB, consumers are protected only by the FTC, which has had a dismal record in financial matters.
What say you?