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(Bloomberg) — Senator Elizabeth Warren on Tuesday applauded a federal judge’s ruling requiring the Trump administration to seek funding for the Consumer Financial Protection Bureau.
The decision by Judge Amy Berman Jackson in Washington, DC, was a rebuke of efforts by CFPB Acting Director Russell Vought to invalidate the regulator’s funding, which depended on its ability to withdraw money from the Federal Reserve.
Warren, a Massachusetts Democrat who pushed to create the agency in the wake of the 2008 financial crisis, said in a statement, “A federal court has struck down the Trump administration’s most recent, ridiculous effort to deprive the Consumer Financial Protection Bureau of funding.” “If the courts continue to uphold the law, they will continue to block Russ Vought’s illegal efforts to ‘shut down’ an agency that has directly returned $21 billion to Americans defrauded by big banks and giant corporations.”
The decision represents a major development in the months-long lawsuit brought against Vought by the National Treasury Employees Union, which represents CFPB employees. Watt, who also serves as White House budget director, said in October that he expected to close the agency “within the next two or three months.”
A CFPB spokesperson did not immediately respond to a request for comment.
“It appears that the defendants’ new understanding of ‘joint earnings’ is an unsupported and transparent attempt to starve [CFPB] “Another attempt to fund funding, which a court injunction has sought to block,” Berman Jackson wrote.
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