Team Biden is having a rough go. They just got embarrassed in Congress.
Because a U.S. Senator silenced the room after outright calling a Biden official a criminal.
Senator John Kennedy Accuses CFPB of Operating Illegally Amidst Financial Debate
Republican Louisiana Senator John Kennedy raised significant accusations against Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra during a “Semi-Annual Report to Congress” hearing on Wednesday. Kennedy asserted that the CFPB is operating illegally due to the Federal Reserve’s lack of earnings since September 2022.
The Dodd–Frank Wall Street Reform and Consumer Protection Act stipulates that the CFPB should be funded from the “combined earnings of the Federal Reserve System.” Kennedy highlighted that since the Federal Reserve has not generated earnings and has instead been “losing money” since September 2022, the CFPB’s current funding mechanism is invalid.
“For the longest time, the Federal Reserve was earning money, but that stopped in September 2022,” Kennedy stated. “Now they are losing money. They don’t have any earnings. They’re no longer transferring earnings to the general fund, and the Supreme Court based its decision on saying, this funding scheme is Constitutional under the appropriations clause, by saying that these earnings would go to the general fund from the Federal Reserve so getting them directly from the general fund is no big deal.”
This issue arises despite the Supreme Court’s 7-2 ruling in May, which affirmed the constitutionality of the CFPB’s funding structure. Justice Samuel Alito, in his dissenting opinion, warned that this ruling might set a precedent allowing federal agencies to finance their operations without Congressional oversight.
During the hearing, Kennedy pressed Chopra on the legality of the CFPB’s funding. “How are you entitled to any money right now?” he asked. “The Federal Reserve doesn’t have any earnings.”
Chopra countered by describing Kennedy’s assertion as a “theory,” to which Kennedy retorted, calling it a “congressional statute.”
“You raise the difference between revenue and net income,” Chopra explained. “There are other places throughout our laws. I can tell you we’ve looked at this issue. We do believe wholeheartedly everyone is complying with the statute.”
Chopra also contested Kennedy’s claim that the Federal Reserve has had no earnings since September 2022. Kennedy remained adamant, arguing, “We didn’t say revenue in the statute, we said earnings. How can you possibly argue that the Federal Reserve has had earnings? They’re losing money.”
“I’m happy to discuss this with you, but we have looked at this theory before,” Chopra replied, maintaining the CFPB’s compliance with the statute.
John Kennedy Tells Chief Biden Regulator Point Blank That His Agency Is 'Operating Illegally' pic.twitter.com/RoWVgwvcK7
— Daily Caller (@DailyCaller) June 12, 2024
The exchange highlights ongoing tensions and differing interpretations regarding the CFPB’s funding mechanism, reflecting broader debates about financial oversight and agency independence.
The Biden administration has been facing criticism since the start of his presidency for what many believe is weaponizing the federal government for his benefit and the detriment of anyone who is a political opponent of the Biden admin and the Democrats as a whole.
Whether or not it’s true, the fact is that Americans don’t have confidence that the Biden administration’s Department of Justice is acting fairly and independently of political narratives, which is what they are supposed to be doing. The DOJ may currently claim this to be the case, but it’s still a major problem that so few Americans have confidence in the Justice system at the highest levels.
Just recently there’s been concerns over the DOJ ruling that they are immune to any legal action over their hiding of the Biden interview with the DOJ over his mishandling of classified documents.
The Department of Justice has decided the Department of Justice can’t be held accountable or be prosecuted for anything.
Realize where we are…. pic.twitter.com/pcOtLtmBGu
— EducatëdHillbilly™ (@RobProvince) June 12, 2024
Some legal experts are arguing that the court system may have legal recourse here, but others suggest Congress must act in reforming the DOJ. Regardless, the fact remains that the DOJ doesn’t seem to be getting anywhere in terms of favor with the American people.
Stay tuned to the DC Daily Journal.
