2023-10-03 19:30:00
Beyond the case of the Consumer Financial Protection Bureau (CFPB), the nine judges will have the opportunity in the coming months to influence the freedom of action of the administrative authorities whose wings the Republicans want to clip.
Can the American Congress delegate to an administrative authority the task of setting its own budget? The answer to this question debated Tuesday before the Supreme Court might depend on entire sectors of the economy.
Beyond the case of the Consumer Financial Protection Bureau (CFPB), created following the 2008 crisis, the nine judges, a majority of whom are conservative, will have the opportunity in the coming months to influence freedom of action of these administrative authorities whose wings the Republicans want to clip.
On their program are a case relating to a 1984 case law, called the “Chevron” doctrine, requiring federal courts to follow the interpretation of government agencies in the event of ambiguity of the law, and one on the powers of the Stock Exchange policeman , the SEC.
If the Supreme Court followed the ruling of an ultra-conservative federal appeals court concluding that the funding of the CFPB was unconstitutional, “it would be the first in a series of blows once morest the bureaucracy,” emphasized Tuesday on the social networks columnist and law professor Harry Litman.
The President of the Court, John Roberts, described as “unusual” the financing mechanism of this independent agency which receives from the Federal Reserve the budget estimated by its director as “necessary” for its operation. “This significantly increases the power of the executive,” Mr. Roberts added.
The appeal ruling “is the first time in our history where a court finds that Congress violated the section (of the Constitution) on spending by adopting a financing law,” argued the legal adviser to the administration Biden, Elizabeth Prelogar.
She warned of the risks of a chain reaction in the economy, citing a brief submitted by federations representing the mortgage and real estate industry.
These professions are concerned regarding an “immediate and intense disruption of the housing market, harming consumers and the economy as a whole” in the event of a retrospective challenge to the rules on real estate borrowing enacted a decade ago by the CFPB.
The representative of the applicants, short-term loan companies, replied that the financing of this authority was “unprecedented”. “And if Congress can do it for the CFPB, it can do it for all the other agencies,” said Noel Francisco, Ms. Prelogar’s predecessor during the Trump administration.
“The future of Social Security, Medicare and any federal banking regulator is seriously threatened if Wall Street lenders and banks get the Supreme Court to weaken the CFPB,” Senator Elizabeth Warren said in a statement. , behind the creation of this agency.
But most of the justices, except the most conservative, expressed skepticism regarding the validity of the arguments once morest defunding the CFPB.
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