Given the current status of the midterm election, it appears likely, but not certain, that Republicans will control the House. If so, this means Rep. Patrick McHenry, R-N.C., currently ranking member of the House Financial Services Committee, will become chairman. Overall, this change will be negative for the country. Regulatory agencies most at risk include the Consumer Financial Protection Bureau (CFPB), given Sen. Elizabeth Warren's role in creating the agency and in light of the fact that an appeals court ruled the CFPB’s funding mechanism unconstitutional: "A three-judge panel of the 5th U.S. Circuit Court of Appeals ruled that the design of the CFPB violated the Constitution because it receives funding through the Federal Reserve, rather than appropriations legislation passed by Congress." As a matter of turf, McHenry is likely to support bringing the agency under congressional funding procedures, as broken as these are. We also expect the Securities and Exchange...
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