Hensarling Questions Legality of CFPB Funding

House Financial Services Committee Chairman Jeb Hensarling wrote to the Federal Reserve seeking clarification on the transfer of funds to the CFPB in light of the recent court decision invalidating certain presidential recess appointments to the NLRB.

Hensarling notes that according to Dodd-Frank, the Federal Reserve Board can only transfer funds to the CFPB at the request of the agency's director.

Because it appears there is not presently a validly-appointed director of the CFPB, I question the circumstances under which the board may lawfully fund the CFPB's operations.

Read the letter.