Why the Senate should protect funding for the CFPB

The Consumer Financial Protection Bureau has been an effective watchdog for consumers, and its secure, independent funding is key to its effectiveness. That’s why a new proposal from the Senate Banking Committee for the massive budget bill now quickly moving through Congress (H.R. 1) to eliminate this source of funding for the Consumer Bureau is so dangerous. 

Congress wisely created this funding structure, as it has with other financial regulators, to help the agency fulfill its mandate to protect consumers without political interference from the companies it regulates. 

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Through a law enacted by Congress, the CFPB receives an amount of up to 12% of the Federal Reserve’s inflation adjusted profits in 2009. This new…