How the U.S. Supreme Court Will Decide the Threat to CFPB's Funding and Structure: Part I, with Adam J. White, a Renowned Expert on Separation of Powers and the Appropriations Clause and a Close Follower of the U.S. Supreme Court
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The eyes of the consumer finance world are now on the Supreme Court as it decides whether to grant the CFPB\\u2019s certiorari petition in CFSA v. CFPB. In the decision, a Fifth Circuit panel held the CFPB\\u2019s funding mechanism violates the Appropriations Clause of the U.S. Constitution. We first review the background of CFSA\\u2019s lawsuit, the mechanism through which the CFPB is funded, and Congress\\u2019s policy rationale for the mechanism. We then examine the reasoning behind the Fifth Circuit\\u2019s conclusion that the funding mechanism is unconstitutional, the CFPB\\u2019s strategy in response to the decision, and the issues CFSA is expected to raise in a cross-petition for certiorari. We conclude with Adam\\u2019s predictions on the outcome of the cert petitions, how SCOTUS is likely to rule if it grants the CFPB\\u2019s petition, potential remedies if SCOTUS rules the funding is unconstitutional, and the impact of such a ruling on pending and future litigation challenging CFPB actions.
Alan Kaplinsky, Senior Counsel in Ballard Spahr\\u2019s Consumer Financial Services Group, moderates the discussion, joined by John Culhane, Richard Andreano, and Michael Gordon, partners in the Group.
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