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WSJ Opinion: Potomac Watch

The CFPB Wins 7-2 at the Supreme Court

WSJ Opinion: Potomac Watch

The Wall Street Journal

News, Society & Culture

4.22.8K Ratings

🗓️ 17 May 2024

⏱️ 24 minutes

🧾️ Download transcript

Summary

Justice Clarence Thomas writes that the Consumer Financial Protection Bureau's power to draw its funding from the Federal Reserve doesn't violate the Constitution, a question that splits the Court's conservatives. Plus, Joe Biden invokes executive privilege to shield audio recordings of his interview with special counsel Robert Hur in the inquiry into his mishandling of classified files. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:20.3

From the opinion pages of the Wall Street Journal, this is Potomac Watch.

0:27.0

The Supreme Court upholds the unusual funding mechanism of the Consumer Financial Protection Bureau in a 7-2 decision.

0:36.2

Meantime President Biden uses executive privilege to shield the release of the audio

0:41.5

tape from his interview over his mishandling of classified documents.

0:46.0

Welcome, I'm Kyle Peterson with the Wall Street Journal.

0:49.3

We are joined today by my colleagues, columnist Alicia Finley and Kim Strassal.

0:54.8

The CFPB is a strange creature in the Washington menagerie.

0:59.3

It was designed to be autonomous and insulated from political accountability.

1:04.3

On Thursday, the Supreme Court ruled on a second big case

1:07.6

over this unusual CFPB structure,

1:10.9

this time holding 7-2 in the CFPB's favor.

1:14.1

Here's the holding in the majority opinion by Clarence Thomas,

1:17.6

Congress's statutory authorization, allowing the Bureau to draw money from the

1:22.2

earnings of the Federal Reserve system to carry

1:25.2

out the Bureau's duties satisfies the appropriations clause.

1:29.2

Alicia, I'm hoping you can explain that a little bit more. What was this case about and what does the

1:33.1

seven two opinion say? So this is the second time that the CFPB has actually been

1:38.0

a Beth Supreme Court defending something related to its structure. Recall that in 2010, the Democrats passed the Dodd-Franked Act, which was intended to create this

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