By John Q. Hosedrinker 
In a recent ruling, a federal district court judge determined the White House cannot cease funding the Consumer Financial Protection Bureau (CFPB). Judge Amy Berman declared that the CFPB should continue receiving funds from the Federal Reserve, rejecting the White House’s argument that the agency’s funding source was unavailable due to the Fed’s losses. The case centers on whether the White House could effectively shut down the CFPB through budget manipulation. The court found the White House’s “combined earnings” argument as an unsupported attempt to starve the CFPB of funding and circumvent a previous injunction protecting its employees.
Read the original article here
Judge blocks White House’s attempt to defund the CFPB, ensuring employees get paid. It’s a bit like a breath of fresh air, isn’t it? A judge stepping in to stop the White House from its attempt to dismantle the Consumer Financial Protection Bureau (CFPB) and, crucially, ensuring that its employees continue to receive their paychecks. It sounds like the judge has recognized that the CFPB’s work is critical, and attempts to shut it down are, well, not in the best interest of the people.
The CFPB made money for the American people, by millions a year. The CFPB played a vital role in protecting everyday folks from shady corporate practices. They held businesses accountable and put money back in the pockets of consumers. The fact that the CFPB was actually profitable, generating more money than it cost to run, makes the Trump administration’s opposition to it even more perplexing. It seems as though this administration only really cares for the super-wealthy and corporations.
This isn’t just about the employees getting paid, but about the CFPB’s continued ability to protect average citizens from big financial institutions. The judge’s ruling means that the CFPB can continue its vital work as a check and balance within the economy. It gives people some measure of security when dealing with financial matters.
At the heart of the matter is whether the then-acting director of the CFPB, Russell Vought, could just unilaterally shut down the agency and lay off its employees. The whole thing seems to ignore the legislative branch and undermines the very principles of checks and balances that are fundamental to our government. It’s almost unbelievable that this is the approach being taken.
The argument that the CFPB should be defunded because it “operates at a loss” just doesn’t hold water. The CFPB is a consumer protection agency. You don’t judge a fire department by its profit margin, and you shouldn’t judge a consumer protection agency that way either. They are not the same, and trying to act like they are is a bad faith argument.
It’s clear the CFPB has been effective in helping the average person fight corporations who were untrustworthy, negligent, or malicious. They’re like the cops for business criminals. The threat of filing a report with the CFPB used to hold a lot of weight, and this ruling hopefully brings it back.
The role of the executive branch is to execute the laws passed by Congress. The agency was created and funded by Congress, making it an impeachable act to try to shut it down.
It seems like the White House’s attempts to defund the CFPB were not just about saving money. It’s about gutting agencies and departments wholesale without so much as a whimper from Congress.
It’s disheartening to see how the CFPB has been targeted by this administration. They are destroying this country from the inside out and they are not for the people. This administration has shown a clear lack of interest in protecting consumers.
The fact that they are willing to ignore the legislative branch really highlights their disregard for the law and for the American people. This ruling is a small but significant victory in safeguarding consumer protection.
The CFPB’s funding comes from surpluses from the federal reserve. This unconventional funding is why the Trump administration was able to just turn off funding to try and snuff the agency. This agency’s work is crucial, especially in holding corporations accountable. The fact that it improves the lives of Americans is why the Trump administration is against it.
There is a massive loophole which SCOTUS is allowing. Congress decides how much to spend, but the President can just choose to not spend it. Until Republicans grow a spine and use their authority, he has carte blanche.
The legislative branch is pretty much just words without any law enforcement to enforce the law.
The actions against the CFPB feel like part of a larger pattern of undermining government institutions and disregarding the rule of law. Some folks are getting a good return on their investment and they’re just too blinded by the lies to see it. It’s good that the employees are getting paid.
The CFPB is an absolute net positive in every conceivable way for normal folks doing capitalism. This is not about protecting consumers, it is about hurting them. The amount of money we’ve given back to consumers based on review and investigation of those complaints could solve world hunger. All of that becomes much MUCH harder for customers to pursue if the CFPB is gone or loses enforcement power. The burden really is on those who want to do shady, shiesty shit which makes me wonder why Vought hates it so much. Banks and other financial institutions have had to change, and the customers love it.
The legislative branch needs to swing its big balls around and impeach + remove. It’s not that they’re neutered, it’s that they won’t pull ’em out. This whole situation is a symptom of a deeper problem: the idea that government should be run like a business, with profit as the primary goal. Governments exist to take care of their citizens.