2.3- How does the Federal Govt. oversee the CFPB?


The CFPB, "Consumer Financial Protection Bureau" is headed by a director appointed by the President with the consent of the Senate for a five-year term.

It is located within the Federal Reserve System (Fed), although the Federal Reserve Board does not influence CFPB's budget or personnel decisions. The Federal Reserve board also cannot veto a rule issued by the CFPB, but the Financial Stability Oversight Council can overturn a CFPB rule with the vote of two-thirds of its members.

The CFPB, which is not subject to Congressional appropriations, is funded through the earnings of the FED. The CFPB requests monetary transfers from the FED with a cap on the amount of these transfers based on a formula set in statute.

For FY2018, the CFPB's funding cap was $663 million, while the agency's net operating costs were $523 million.