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Submission: On October 04 via manual from US — Scanned from US
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<div>– GET INVESTING INSIGHT FROM EXPERTS–</div>
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<div>Bank of America says long-term investors should buy these beaten-up bank stocks</div>
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<div class="bx-row bx-row-image bx-row-image-default bx-row-3bsBR9Z bx-element-2309833-3bsBR9Z" id="bx-element-2309833-3bsBR9Z"><img src="//assets.bounceexchange.com/assets/uploads/clients/1021/creatives/e8b429d47b5ab601fdf52697e9cb3dd2.png"
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<div class="bx-group bx-group-default bx-group-2309833-OsDd7GC bx-group-OsDd7GC" id="bx-group-2309833-OsDd7GC">
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<div>making the most of economic uncertainty</div>
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<div>October 12</div>
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<div>10am ET</div>
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src="//assets.bounceexchange.com/assets/uploads/clients/1021/creatives/e8b429d47b5ab601fdf52697e9cb3dd2.png" alt="CNBC Financial Advisor Summit"></div>
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<div>making the most of economic uncertainty</div>
</div>
</div>
<div class="bx-group bx-group-default bx-group-2309833-0fS4QiE bx-group-0fS4QiE" id="bx-group-2309833-0fS4QiE-clone">
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<div>October 12</div>
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<div>10am ET</div>
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<div>making the most of economic uncertainty</div>
</div>
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<div>october 12</div>
</div>
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<div>10am et</div>
</div>
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<div class="bx-row bx-row-image bx-row-image-default bx-row-qj19l3d bx-element-2329555-qj19l3d" id="bx-element-2329555-qj19l3d"><img src="//assets.bounceexchange.com/assets/uploads/clients/1021/creatives/897939f24b2c80859a2d515d1615f8fd.jpg"
alt="Leon Cooperman"></div>
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<div><span style="font-size: 1.2em; font-family: Lyon, serif; text-transform: uppercase;">Leon<br> Cooperman</span><br>Omega Advisors</div>
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Skip Navigation * watchlive Supreme Court case may gut the CFPB: Consumer watchdog’s ‘future is on the line,’ group says * watchlive CREATE FREE ACCOUNT Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Climate * Transportation * Industrials * Retail * Wealth * Life * Small Business Investing * Personal Finance * Fintech * Financial Advisors * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * CNBC Disruptor 50 * Tech Guide Politics * White House * Policy * Defense * Congress * Equity and Opportunity CNBC TV * Live TV * Live Audio * Business Day Shows * Entertainment Shows * Full Episodes * Latest Video * Top Video * CEO Interviews * CNBC Documentaries * CNBC Podcasts * CNBC World * Digital Originals * Live TV Schedule Watchlist Investing Club * Trust Portfolio * Analysis * Trade Alerts * Meeting Videos * Homestretch * Jim’s Columns * Education * Subscribe * Sign In PRO * Pro News * Pro Live * Stock Screener * Market Forecast * Subscribe * Sign In Menu * Make It * select * ALL SELECT * Credit Cards * Loans * Banking * Mortgages * Insurance * Credit Monitoring * Personal Finance * Small Business * Taxes * Help for Low Credit Scores * Investing * SELECT * All Credit Cards * Find the Credit Card for You * Best Credit Cards * Best Rewards Credit Cards * Best Travel Credit Cards * Best 0% APR Credit Cards * Best Balance Transfer Credit Cards * Best Cash Back Credit Cards * Best Credit Card Welcome Bonuses * Best Credit Cards to Build Credit * SELECT * All Loans * Find the Best Personal Loan for You * Best Personal Loans * Best Debt Consolidation Loans * Best Loans to Refinance Credit Card Debt * Best Loans with Fast Funding * Best Small Personal Loans * Best Large Personal Loans * Best Personal Loans to Apply Online * Best Student Loan Refinance * SELECT * All Banking * Find the Savings Account for You * Best High Yield Savings Accounts * Best Big Bank Savings Accounts * Best Big Bank Checking Accounts * Best No Fee Checking Accounts * No Overdraft Fee Checking Accounts * Best Checking Account Bonuses * Best Money Market Accounts * Best CDs * Best Credit Unions * SELECT * All Mortgages * Best Mortgages * Best Mortgages for Small Down Payment * Best Mortgages for No Down Payment * Best Mortgages with No Origination Fee * Best Mortgages for Average Credit Score * Adjustable Rate Mortgages * Affording a Mortgage * SELECT * All Insurance * Best Life Insurance * Best Homeowners Insurance * Best Renters Insurance * Best Car Insurance * Travel Insurance * SELECT * All Credit Monitoring * Best Credit Monitoring Services * Best Identity Theft Protection * How to Boost Your Credit Score * Credit Repair Services * SELECT * All Personal Finance * Best Budgeting Apps * Best Expense Tracker Apps * Best Money Transfer Apps * Best Resale Apps and Sites * Buy Now Pay Later (BNPL) Apps * Best Debt Relief * SELECT * All Small Business * Best Small Business Savings Accounts * Best Small Business Checking Accounts * Best Credit Cards for Small Business * Best Small Business Loans * Best Tax Software for Small Business * SELECT * All Taxes * Best Tax Software * Best Tax Software for Small Businesses * Tax Refunds * SELECT * All Help for Low Credit Scores * Best Credit Cards for Bad Credit * Best Personal Loans for Bad Credit * Best Debt Consolidation Loans for Bad Credit * Personal Loans if You Don’t Have Credit * Best Credit Cards for Building Credit * Personal Loans for 580 Credit Score or Lower * Personal Loans for 670 Credit Score or Lower * Best Mortgages for Bad Credit * Best Hardship Loans * How to Boost Your Credit Score * SELECT * All Investing * Best IRA Accounts * Best Roth IRA Accounts * Best Investing Apps * Best Free Stock Trading Platforms * Best Robo-Advisors * Index Funds * Mutual Funds * ETFs * Bonds * USA * INTL * watchlive Search quotes, news & videos Watchlist SIGN IN Create free account Supreme Court case may gut the CFPB: Consumer watchdog’s ‘future is on the line,’ group says * watchlive CREATE FREE ACCOUNT Markets Business Investing Tech Politics CNBC TV Watchlist Investing Club PRO Menu Personal Finance SUPREME COURT CASE MAY GUT THE CFPB: CONSUMER WATCHDOG’S ‘FUTURE IS ON THE LINE,’ GROUP SAYS Published Tue, Oct 3 20238:29 AM EDTUpdated Tue, Oct 3 20239:37 AM EDT Greg Iacurci@GregIacurci WATCH LIVE ShareShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email Key Points * The Supreme Court will hear oral arguments Tuesday in Consumer Financial Protection Bureau v. Community Financial Services Association of America. * The plaintiff alleges CFPB funding is unconstitutional because it’s not subject to annual appropriations from Congress. * Depending on how the court rules, past rules issued by the CFPB may be deemed illegal. Funding mechanisms of agencies like the Federal Reserve and government programs like Social Security might also be thrown into doubt. Visitors walk across the U.S. Supreme Court plaza on the first day of the court’s new session on Oct. 2, 2023. Bill Clark | Cq-roll Call, Inc. | Getty Images The Supreme Court is set to hear oral arguments Tuesday in a case with the potential to gut the Consumer Financial Protection Bureau, a watchdog agency created in the wake of the 2008 financial crisis. The case — CFPB v. Community Financial Services Association of America — hinges on the constitutionality of the agency’s funding. If the high court sides with the CFSA, a trade group representing payday lenders, its ruling could have broad and significant impacts for consumers, according to legal experts and consumer advocates. For example, any rules the CFPB has issued in the past 12 years — whether about credit cards, mortgages, payday loans or debt collection, for example — could be nullified, experts said. Some regulators like the Federal Reserve and government programs like Social Security share a similar funding model to the CFPB’s; they may also be called into question. More from Personal Finance: Biden ESG rule survives challenge in court IRS to target ‘unscrupulous’ tax preparers amid new crackdown White House moves ahead with new plan to cancel student debt ″[The CFPB’s] future is on the line before the Court,” Better Markets, a consumer advocacy group, wrote Monday. A ruling could come as late as June 2024. WHY THE CFPB’S FUNDING MAY BE UNCONSTITUTIONAL The Consumer Financial Protection Bureau headquarters in Washington. Samuel Corum/Bloomberg via Getty Images The CFPB was established in 2011 by the Dodd-Frank financial reform law in the wake of the Great Recession. Lawmakers created the federal agency to protect consumers from predatory financial practices. To date, it has collected $17.5 billion in financial relief for about 200 million eligible people, according to agency data. The recent case isn’t the first to pose a threat to CFPB operations. The Supreme Court ruled against the agency in a 2020 case, Seila Law v. CFPB, finding part of its structure to be unconstitutional but ultimately keeping the agency intact. In the current case, the CFSA trade group sued the CFPB in 2018, seeking to invalidate a 2017 rule that cracked down on payday lenders. > [The CFPB’s] future is on the line before the Court. > Better Markets The case was ultimately heard by the U.S. Court of Appeals for the 5th Circuit, which ruled in October 2022 that the CFPB’s funding mechanism violated the Constitution’s appropriations clause. The agency isn’t subject to annual appropriations, the budget process whereby Congress allocates funding to various parts of the federal government. (A breakdown of this process is what almost led to a government shutdown on Sunday.) Instead, the CFPB’s funding isn’t authorized by Congress each year. It has an independent funding structure sourced through the Federal Reserve — an attempt to shield the agency from political pressures, experts said. Its director requests those funds each year, capped at 12% of the Federal Reserve System’s total operating expenses. watch now VIDEO2:0502:05 A.I. industry is not ‘unregulated’ under current laws, says CFPB Director Rohit Chopra Power Lunch The 5th Circuit ruled that this structure was unconstitutional, and that the payday rule was therefore illegal. Such a ruling appears to be unprecedented, the Congressional Research Service said. “The Fifth Circuit’s decision is significant as the first appellate decision — and perhaps the first court decision ever — to conclude that congressional action, as opposed to executive or judicial action, can violate the Appropriations Clause,” it wrote. WHY THE SUPREME COURT MAY GUT THE CFPB If the Supreme Court were to agree, it could pose an “existential” threat to the agency, said John Coleman, partner at the law firm Orrick and former deputy general counsel for litigation at the CFPB from 2016 to 2021. For one, it’s possible that the agency would exist only as a shell of its former self. “It would still exist as a creation of Congress,” Coleman said. “But if its funding stream is deemed unconstitutional, it cannot spend those funds, which calls into question how it pays its employees. “Without employees, an agency can’t do anything.” Rohit Chopra, director of the CFPB, testifies during a House Financial Services Committee hearing on June 14, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images Additionally, such a ruling would call into question the agency’s past and future rulemakings, experts said. ″[It] could cast legal doubt over every substantive action that the CFPB has taken since at least July 21, 2011, when the Bureau’s authorities went into full effect, if not since its inception a year earlier, as well as any future Bureau action,” the Congressional Research Service said. “This would include myriad regulatory actions, such as dozens of rulemakings, enforcement actions, and examinations the Bureau has conducted over the past 12 years,” it added. Such a ruling would have a “devastating” impact on the real estate industry, including the destabilization of the mortgage market, for example, according to a court filing made by industry groups including the Mortgage Bankers Association, the National Association of Home Builders and the National Association of Realtors. watch now VIDEO2:4102:41 CFPB expects more borrowers to default as student loan payments resume Squawk Box Numerous other government agencies and programs are funded outside the annual appropriations process, said Rachel Gittleman, financial services outreach manager at the Consumer Federation of America. They include, among others: the Federal Reserve, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, Federal Housing Finance Agency, National Credit Union Administration, Farm Credit Administration, Farm Credit Insurance Corp., Medicare, Medicaid, Social Security, the Affordable Care Act and unemployment benefits, she said. Such an outcome is unlikely, however, Coleman said. If it were to rule against the CFPB, the high court would likely preserve the validity of CFPB’s past rulemakings and give Congress some time to determine an alternative funding mechanism, he said. (Of course, the latter might be difficult in a divided Congress during an election year, he said.) “We’ll know a lot more on Tuesday after we hear from the justices,” Coleman said. TV Squawk on the StreetWATCH LIVEWATCH IN THE APP UP NEXT | Fast Money Halftime 12:00 pm ETListen TV Squawk on the StreetWATCH LIVEWATCH IN THE APP UP NEXT | Fast Money Halftime 12:00 pm ETListen Trending Now 1. Trump returns to court for $250 million fraud trial after judge imposes gag order 2. Biden cancels $9 billion in student debt for 125,000 borrowers 3. Your phone will make an alarming noise Wednesday at 2:20 p.m. ET unless you turn it off first 4. The No. 1 phrase people who are good at small talk always use, says Stanford public speaking expert 5. 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