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Second Circuit Review: Circuit Split on the Consumer Financial Protection Bureau’s Funding Structure
June 28, 2023
Litigation of counsel Martin Flumenbaum and firm Chairman Brad Karp’s latest Second Circuit Review column, “Circuit Split on the Consumer Financial Protection Bureau’s Funding Structure,” appeared in the June 28 issue of the New York Law Journal. The authors discuss the Second Circuit’s decision addressing whether the Consumer Financial Protection Bureau (CFPB)’s funding structure was proper under both the appropriations clause, which governs public money, and the nondelegation doctrine, which says that Congress cannot delegate its legislative powers to other entities. The unanimous opinion in Consumer Financial Protection Bureau v. Law Offices of Crystal Moroney determined that the CFPB’s funding structure was not constitutionally deficient under either doctrine. In reaching this holding, the Second Circuit expressly split from the Fifth Circuit’s recent opinion in Community Financial Services Association of America v. Consumer Financial Protection Bureau, which held that the CFPB’s funding apparatus could not be reconciled with the appropriations clause. Litigation associate Connor Ritschard assisted in the preparation of this column.
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