The Consumer Financial Protection Bureau, Sen. Elizabeth Warren’s brainchild, fought for its life Tuesday at the Supreme Court, arguing there’s nothing unusual about Congress giving the Wall Street regulatory agency the power to set its own budget without having to ask lawmakers for money each year.
The case serves up big questions about Congress’ power of the purse and how much of that power lawmakers can give away to the president.
The CFPB was created after the 2008 Great Recession as a consumer-focused regulator of banks and other financial institutions. Ms. Warren, then a Harvard University law professor, envisioned a body independent of political pressures. Solicitor General Elizabeth Prelogar, defending the CFPB, said the agency is well within the historical norm for how Congress has used its spending power.
But he said the CFPB presents a new mix of elements, with perpetual independent budget authority not linked to its own regulatory activities.
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