Lawmaker Questions Legality Of CFPB Funding

Law360, New York (March 12, 2013, 7:01 PM EDT) -- The chairman of the House Financial Services Committee on Friday questioned whether the Federal Reserve's funding of the Consumer Financial Protection Board was legal in light of the D.C. Circuit's blockbuster ruling that the president's recess appointments to the National Labor Relations Board were unconstitutional.

The Dodd-Frank Act established that the CFPB is run by a single director rather than a commission and its funding comes through the Fed, meaning that it is not subject to the congressional appropriations process. While Democrats say this guarantees the...
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