The Supreme Court on Thursday rejected a broad challenge to the Consumer Financial Protection Bureau, reversing a lower-court ruling that would have undermined the watchdog agency created by Congress 12 years ago.
The CFPB case is one of several the Supreme Court heard this term that challenge the power of federal agencies, long a target of conservatives concerned about regulation and government bureaucrats whom they see as unaccountable to the public. In a 7-2 decision written by Justice Clarence Thomas, the court upheld as constitutional the bureau’s funding mechanism — which is based on profits from the Federal Reserve, rather than an annual appropriation.
