John Kennedy, a Republican senator from Louisiana, accused Rohit Chopra, the director of the Consumer Financial Protection Bureau (CFPB), on Wednesday that his agency operated illegally.
According to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB must operate with funds from the “combined earnings” of the Federal Reserve System. However, Kennedy claimed during a CFPB hearing on the “Semi-Annual report to Congress” that the Federal Reserve had not earned any money and that it has been “losing” money since September 2022. Kennedy argued that this meant the CFPB was “operating illegally.”
WATCH:
John Kennedy Tells Chief Biden Regulator Point Blank That His Agency Is ‘Operating Illegally’ pic.twitter.com/RoWVgwvcK7
— Daily Caller (@DailyCaller) June 12, 2024
Kennedy stated that the Federal Reserve had been earning money for a long time but this stopped in September 2022. “Now, they’re losing money. They have no earnings. The Federal Reserve no longer transfers earnings to the General Fund. According to the Supreme Court, the funding scheme was constitutional under the Appropriations Clause. “These earnings would have gone to the General Fund from the Federal Reserve, so getting them straight from the General fund is not a big deal,” said he.
In May, the Supreme Court ruled that the unconventional method by which the CFPB obtained funding was constitutional. Justice Samuel Alito wrote that in his dissenting view, the ruling could set a precedent for federal agencies to “fund their agenda” without congressional oversight or control.
Kennedy asked, “How can you possibly be entitled to money at this time?” The Federal Reserve has no earnings.
Kennedy responded by saying that it was a “congressional statute.” Chopra replied that this was a theory.
Chopra replied, “You are referring to the difference between net income and revenue.” There are many other places in our laws. We’ve examined this issue. “We do believe that everyone is following the statute.”
Chopra also denied that the Federal Reserve had not earned any money since September 2022.
“I understand that you may not like hearing this, but it is the truth. Kennedy told him, “You’ve been working illegally.”
Chopra replied, “No, it’s not true.
Kennedy asserted again that the Federal Reserve had not earned any money.
Kennedy stated, “We didn’t mention revenue in the statute; we said earnings.” “How could you possibly claim that the Federal Reserve has earned money?” “They’re losing money.”
Chopra replied, “I am happy to discuss it with you but we have already looked at this theory.”
