Tag Archives: CFPB

The corrupt and power-hungry Consumer Financial Protection Bureau

Link here. The CFPB was established under the Dodd-Frank law signed by Obama under a framework that one court has already ruled is unconstitutional.

[A]s is common in Washington, the vague language used to craft that law gave regulators wide latitude and the bureau emerged in the Obama administration as a powerful force in the regulatory state.

“There’s strong evidence that the CFPB was pursuing Obama administration tactics and priorities, even if it was not directly coordinating with other Obama-run agencies,” said John Berlau, a scholar with the conservative Competitive Enterprise Institute. As an example of such connections, Berlau pointed to Operation Choke Point, a 2013 Justice Department initiative during which the CFPB pursued payday lenders while prosecutors focused on banks dealing with those businesses or gun retailers. “Like other Obama regulators, the CFPB attempted to make law through administrative maneuvers,” Berlau told RCI. “Yet the CFPB’s abuses of process exceeded even those of other Obama administration bureaucracies due to the bureau’s unique lack of accountability.”

That lack of accountability was one of the reasons a three-judge panel on the D.C. Circuit Court of Appeals ruled the CFPB an unconstitutional entity in October 2016 – a decision that awaits an en banc ruling from the Appeals Court.

The article outlines how the CFPB has used its vague regulatory powers during the Obama administration to begin open investigations into numerous businesses, not based on any suspected crimes but as a weapon of the Obama administration against businesses it did not like.

The bad part of this story is that there appears no effort by the Trump administration to shut down this out-of-control agency. Instead, it is trying to “rein” it in. Meanwhile, this agency, which according to the law that created it, can spend money without Congressional approval, and is doing so at rates that would make billionaires like Trump blush: A New CFPB Scandal – Cost Overruns for Its New Lux Headquarters

Original cost estimates for the CFPB’s renovation were estimated at $55 million, but the bureau ran up the proposed cost to $216 million. The Federal Reserve Inspector General rejected the proposal in 2014, saying there was no “sound basis” for the figure.

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Playing Politics with the Constitution and the Law

Playing politics with the Constitution and the law.

All of Obama’s appointments yesterday are illegal under the Constitution. And, in addition, as too little noted by the media, his appointment of Richard Cordray to head the Consumer Financial Protection Bureau (CFPB) is legally futile. Under the plain language of the Dodd-Frank Act that created the CFPB, Cordray will have no authority whatsoever.

The Dodd-Frank act explicitly requires Cordray’s confirmation by the Senate in order for his authority to go into effect. Prior to that confirmation he has no authority.

Once again, the issue here is what Obama’s actions tell us about him as an elected official, suggesting that he an arrogant man who is willing to trash the Constitution and create legal hell for business and the government all for the sake of election-year politics. Not a good recommendation at all.

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