House engages in heated debate about constitutionality of the CFPB

House debates CFPB constitutionality

On March 21, 2017, the House Financial Services Committee’s Subcommittee on Oversight and Investigations conducted a hearing entitled “The Bureau of Consumer Financial Protection’s Unconstitutional Design.” The hearing featured four witnesses: Ted Olson, Saikrishna Prakash, Adam White, and Brianne Gorod. The hearing is archived and can be viewed here.

Rather than allowing the witnesses to offer their expertise on the CFPB’s constitutionality and design, House Republicans and Democrats on the subcommittee used the hearing as a platform to express their opinions of the virtues of the CFPB’s mission and accomplishments rather than evaluating and critiquing the agency’s constitutionality.

House subcommittee to hold hearing on CFPB’s constitutionality

House subcommittee hearing CFPBOn March 21, 2017, the Subcommittee on Oversight and Investigations of the House Committee on Financial Services will hold a hearing entitled “The Bureau of Consumer Financial Protection’s Unconstitutional Design.” Based on the title of the hearing, isn’t hard to guess where the committee stands on the issue of the CFPB’s authority and constitutionality.

According to the memorandum from the Committee’s Majority Staff to Committee Members, the hearing “will examine whether the structure of the Bureau of Consumer Financial Protection (“Bureau”) violates the Constitution as well as structural changes to the Bureau to resolve any constitutional infirmities.”

Cordray’s CNBC interview raises more questions than answers

Cordray interview CFPB Director Richard Cordray has not made a habit of participating in in-depth interviews very often. Recently however, Director Cordray finally shared some thoughts about his role as the head of the CFPB and the future of the agency during an interview with CNBC’s chief Washington correspondent John Harwood.

The conversation focused primarily on the recent change in political winds in Washington and Cordray’s perspective on the CFPB’s role in holding financial institutions accountable while protecting consumers.