Todd Phillips

CFPB Faces Cash Crunch as Trump’s New Funding Cap Takes Hold The Consumer Financial Protection Bureau is running out of money and won’t be able to fully replenish it under a new funding cap imposed by Republicans, jeopardizing the agency’s spending on personnel...

The CFPB is running out of money, and thanks to the Republican reconciliation bill it can't ask for more even if Russ Vought wanted to (he doesn't). It's all a part of the plan.

New from me:

news.bloomberglaw.com/banking-law/...

I'm pleased to announce that my essay, When Siri Becomes a Deposit Broker, is now forthcoming in @finandsoc.bsky.social!

The most recent version is available here: papers.ssrn.com/sol3/papers....

We have a great discussion of the role of quorum requirements and voting rules in the context of majoritarian institutions.

The Texas House apparently has a 2/3 quorum requirement. I'd love to know history of why it's not a majority, if anyone has knows.

We have a great discussion of the role of quorum requirements and voting rules in the context of majoritarian institutions.

The Texas House apparently has a 2/3 quorum requirement. I'd love to know history of why it's not a majority, if anyone has knows.

Once again, @tphillips.bsky.social and I would like to remind you about the wonderfully fascinating world of quorums.

papers.ssrn.com/sol3/papers....

Quorum Rules in the Face of Presidential Removal, by Nicholas R. Bednar & Todd Phillips - Yale Journal on Regulation In March 2025, the Merit Systems Protection Board (MSPB)—the three-member commission that considers employment claims brought by federal employees—lost its quorum. Raymond Limon retired as his term ex...

Over at Yale J. On Reg., @tphillips.bsky.social and I summarize our latest working paper and explain the need for greater focus on quorum rules with the expansion of the president's removal power.

www.yalejreg.com/nc/quorum-ru...

Outside of the current MSPB litigation involving DOJ lawyers, I haven't seen anything.

I think they would have opposed what's going on today. Lochnerism was entirely about individual freedom. The current court also likes individual liberty, but in an only-the-unitary-executive-can-give-freedom kind of way.

Sure would be nice to know what the Court is thinking, huh? I remember being told once upon a time that the courts were the only branch of government that had to explain their decisions. Those were the days.

CFPB Paying Nearly $5 Million for Vought’s Security Detail (1) The Consumer Financial Protection Bureau is sending nearly $5 million to the Office of Management and Budget to pay for a security detail for Russell Vought, who currently leads both agencies.

Congress just slashed the CFPB's budget. The acting director hasn't asked the Fed for any money since he took over in February.

So obviously the CFPB is going to pay nearly $5 million for Russell Vought's security detail. news.bloomberglaw.com/banking-law/...

What are casino chips but physical stablecoins?

Crypto custodian BitGo joins Grayscale in confidentially filing IPO documents with SEC Crypto custodian BitGo has confidentially filed for a U.S. IPO, joining Grayscale and others in a wave of digital‑asset listings.

BitGo has filed for an IPO. It issues USD1, the Trump-aligned stablecoin. These documents may detail the profit split between BitGo and World Liberty Financial. Based on public disclosures, President Trump likely receives 28% of WLF's total revenues.

www.theblock.co/post/363601/...

Do you know what federal executive branch approval is necessary for the site?

Trump set to sign landmark crypto bill as critics warn of huge conflict of interest risk The House of Representatives passed a bill on Thursday to regulate the stablecoin sector.

I spoke with @fortune.com about how it's a problem that the president has an indirect financial relationship with a stablecoin issuer. If BitGo applies for a license and the OCC rejects it, the president can fire the comptroller.

fortune.com/crypto/2025/...

Maybe Alvaro would have to pay back the speaking fees once the litigation was settled and he received back pay (if he won). But this distinction means the difference between litigating and having to throw in the towel.

Was fired, and the court found the termination illegal.

It meant Alvaro could have been getting speaking fees or something to keep himself afloat. Becca took the same position, and the only reason she could afford to keep litigating is because her husband is at a VC firm.

I'm with @smmarotta.bsky.social on this for the reason that it has huge consequences for litigation. I'm sure you saw, but because Alvaro Bedoya considered himself still employed by the FTC, he had to "resign" from the Comm'n to get another job. But he lost standing.

I saw this. She won on qualified immunity. It means that I, as a banking scholar, now need to learn the ins and outs of qualified immunity. Ugh.

While presidents often nominate new commissioners, quorum losses tend to linger for a significant period of time due to delays in the confirmation process. Learn more from @tphillips.bsky.social and I in our new working paper:

papers.ssrn.com/sol3/papers....

By the way, about Lev's comment in the article about notice and hearing, that's from the Due Process Clause. Does the DPC apply when POTUS removes a principal officer? Presumably under Loudermill, but does anyone actually think the Court would enforce that requirement against POTUS?

Err, chair pro tem, I guess is what the statute says.

Wrong vice chair. Bowman is the VC for Supervision. The other VC, who would serve as acting, is Philip Jefferson, a Biden appointee. If Trump fired him, the Board would select an acting VC, who would serve as acting Chair.

I can say that, without a doubt, Nick makes the best graphs.

Check them out here! papers.ssrn.com/sol3/papers....

🚨@nicholasbednar.bsky.social and I have a new article titled Commission Quorums.

In light of firings rendering the NLRB and MSPB quorum-less, we review caselaw, common law principles, and the quorum rules of 76 commissions to understand the law of quorums. 1/

papers.ssrn.com/sol3/papers....

There's a lot more in the article. We hope you read it and learn something. And if you have any comments, we'd love to hear them! 6/6

Fourth, because the Constitution obliges the president
“take Care that the Laws be faithfully executed,” we argue that the president should not be permitted to removal commissioners when doing so would result in commissions being unable to enforce the law when they are below a quorum. 5/

Third, our analysis of statutory and regulatory quorum requirements reveals that Congress prefers the common-law rules, protecting majoritarianism and deliberative decision-making, but commissions adopt rules that preserve their flexibility. 4/

Second, common-law quorum rules, which apply in the absence of statutory provisions to the contrary, can be summed up by the following principles.

(Note, we think that federal courts not following these principles has enabled President Trump's removals!) 3/

We know the paper is long, so here are four key takeaways.

First, quorum requirements (combined with voting rules) seek to balance three risks to collective decision-making: counter-majoritarian errors, deliberative errors, and absenteeism. 2/

🚨@nicholasbednar.bsky.social and I have a new article titled Commission Quorums.

In light of firings rendering the NLRB and MSPB quorum-less, we review caselaw, common law principles, and the quorum rules of 76 commissions to understand the law of quorums. 1/

papers.ssrn.com/sol3/papers....