The judge, in New York of all places, finds the Consumer Protection Bureau housed in the Fed unconstitutional. Maybe now the Supreme Court will finally address the complete unconstitutionality of an agency that operates with zero Congressional budget control or oversight, using money created by the Federal Reserve.
(From The Washington Free Beacon)
A New York federal judge on Thursday threw out a case brought by the Consumer Financial Protection Bureau (CFPB), ruling that the agency’s structure is unconstitutional.
Senior U.S. District Judge Loretta Preska ruled that the CFPB does not have standing to pursue cases because of its structure, contradicting a U.S. appeals court ruling from earlier this year, the Washington Post reports. That ruling by the U.S. Court of Appeals for the District of Columbia Circuit is not binding in New York, and Preska said she “respectfully” disagrees.
“Because the CFPB’s structure is unconstitutional, it lacks the authority to bring claims,” Preska’s ruling said.
The conflicting rulings make it more likely that the Supreme Court takes up a case on the constitutionality of the CFPB’s independent structure.
“It will make the issue more attractive for the Court,” said Allison Schoenthal, an attorney who represents banks before the CFPB and other regulators.