That’s wrong. See Section 1017 of the Dodd-Franken act: https://www.govinfo.gov/content/pkg/PLAW-111publ203/html/PLAW-111publ203.htm https://www.govinfo.gov/con

That’s wrong. See Section 1017 of the Dodd-Franken act: https://www.govinfo.gov/content/pkg/PLAW-111publ203/html/PLAW-111publ203.htm https://www.govinfo.gov/content/pkg/PLAW-111publ203/html/PLA... The bureau gets its funding from the Federal Reserve System. What the argument may or may not have been is that fines would exceed operating costs. But they don’t go directly to the bureau, which therefore still needs to finance its operations. Collected fines do not go into the bureau’s general operating budget, but are supposed to be used for compensating victims or, if that’s not possible, specifically into financial literacy programs. Quote: “There is established in the Federal Reserve a separate fund, to be known as the ``Consumer Financial Civil Penalty Fund'' (referred to in this section as the ``Civil Penalty Fund''). The Civil Penalty Fund shall be maintained and established at a Federal reserve bank, in accordance with such requirements as the Board of Governors may impose. If the Bureau obtains a civil penalty against any person in any judicial or administrative action under Federal consumer financial laws, the Bureau shall deposit into the Civil Penalty Fund, the amount of the penalty collected. (2) Payment to victims.--Amounts in the Civil Penalty Fund shall be available to the Bureau, without fiscal year limitation, for payments to the victims of activities for which civil penalties have been imposed under the Federal consumer financial laws. To the extent that such victims cannot be located or such payments are otherwise not practicable, the Bureau may use such funds for the purpose of consumer education and financial literacy programs.”