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Tuesday, March 12, 2013

Rep. Hensarling Questions Validity of CFPB Funding

House Financial Services Committee Chairman Jeb Hensarling (R-TX) wrote to the Federal Reserve Board last week regarding the transfer of funds to the Consumer Financial Protection Bureau (CFPB) in light of the federal appeals court ruling on the validity of the President’s appointments to the National Labor Relations Board, which came at the same time as Richard Cordray’s appointment as CFPB Director.

The Dodd-Frank Act “authorizes the Board to transfer funds to carry out the authorities of the CFPB only at the request of its director,” Chairman Hensarling wrote.  “Because it appears there is not presently a validly-appointed director of the CFPB, I question the circumstances under which the Board may lawfully fund the CFPB’s operations.”

Read the letter posted on the House Financial Services Committee website.