June 25, 2024
News

Consumer watchdog’s funding upheld by Supreme Court

The US Supreme Court upheld the funding system of the Consumer Financial Protection Bureau, eliminating a legal threat that could have disrupted an agency established in the aftermath of the 2008 financial crisis to oversee mortgages and other consumer-finance products. By a 7-2 vote, the justices dismissed arguments challenging the constitutionality of the CFPB, which is financed through the Federal Reserve.

## FAQ

1. What is the Consumer Financial Protection Bureau?
The Consumer Financial Protection Bureau is a government agency responsible for regulating mortgages and other consumer-finance products.

2. How is the Consumer Financial Protection Bureau funded?
The CFPB receives its funding through the Federal Reserve.

3. Why was the constitutionality of the Consumer Financial Protection Bureau challenged?
Some argued that the funding system of the CFPB was unconstitutional.

## Conclusion

The US Supreme Court’s decision to uphold the funding system of the Consumer Financial Protection Bureau ensures the agency can continue its crucial role in overseeing consumer-finance products without disruption.

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