Hensarling Questions Legality of Fed’s Funding of CFPB

House Financial Services Chairman Jeb Hensarling has sent a letter to Ben Bernanke asking for an explanation for the legal basis for the Fed’s funding of CFPB.  The argument is straightforward in light of Noel Canning: “ASs you know, the Dodd-Frank Wall Street Reform and Consumer Protection Act… authorizes the Board to transfer funds to carry out the authorities of the CFPB only at the request of its director.  Because it appears there is not presently a validly-appointed director of the CFPB, I question the circumstances under which the Board may lawfully fund the CFPB’s operations.”