The Dodd-Frank Act which establishedrnCFPB set up its funding mechanism through the Federal Reserve rather thanrnthrough the annual Congressional appropriations process and denies the Fed anyrnauthority to deny or adjust the funding request.  This was done to insulate the agency from thernpolitical pressure that attends the appropriations process.</p

Also on Friday Senator Jerry Moranrn(R-KA) filed a bill, The Responsible Consumer Financial Protection RegulationsrnAct of 2013, (S. 205), which would replace the CFPBrndirector with a Senate-confirmed five person commission and incorporating the letter’srnother two demands.  </p

Moran said of his bill, which hernalso introduced in 2011, “Allowing a single unelected official to definerntheir own jurisdiction and regulate vast segments of our economy without accountabilityrnor restraint is irresponsible regardless of political party.  This commonsense legislation brings a varietyrnof perspectives to the Bureau and gives Congress the oversight authorityrnrequired for such a powerful agency. We stand ready to work with thernpresident to make certain the CFPB’s mission of consumer protection is bothrneffective and accountable.</p

“History has shown that thern’power of the purse’ is a critical tool that Congress employs to hold agenciesrnaccountable,” Sen. Moran continued. “The CFPB has more power andrnauthority than almost any independent agency in history and asking them tornpresent a budget to Congress for approval is a very modest request.”</p

Moran’s office points out that thernoriginal version of the Dodd-Frank Act passed by the house established CFPBrnwith a five-member commission appointed by the president with no more thanrnthree members from the same political party. rnThis provision was removed in conference and a single director replacedrnthe commission.

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