US Senator Warren: Supreme Court CFPB case threatens all bank regulators

A case due to come before the U.S. Supreme Court next week has the potential to expose every federal bank regulator to political inference while also jeopardizing Social Security and Medicare, the federal health insurance program, U.S. Senator Elizabeth Warren said on Thursday.

The court next week is due to hear arguments in a challenge to the constitutionality of the U.S. Consumer Financial Protection Bureau's (CFPB) funding. The Biden administration has said the case threatens the agency's ability to function, which would undermine the federal government's capacity to protect financial consumers.

Trade groups representing the payday lending industry, which brought the case, argue the U.S. Constitution prohibits the current arrangement in which the Federal Reserve supplies the CFPB's funding. The CFPB regulates and polices consumer finance industries, including payday and title lending, as well as mortgage origination.