CFPB Shouldn’t Exist. It Should Stop Expanding Its Oversight-Free Power
The Consumer Financial Protection Bureau (CFPB) is an unconstitutional nightmare mess.
We have been saying so for a while now….
It ain’t just us saying it….
“For anyone involved in the financial services industry over the last four years, the CFPB or Consumer Financial Protection Bureau has become a four letter word
“This entity created by Congress as part of the Dodd-Frank act passed after the financial collapse in 2008, was given broad jurisdiction to regulate all types of financial services, from banks to title companies to insurance agencies.
“However, in a ruling on October 11, 2016, the U.S. Court of Appeals for the District of Columbia Circuit found the structure of the CFPB unconstitutional because of the ‘concentration of enormous executive power in a single, unaccountable, unchecked Director who wields vast power over the U.S. economy.’…
“(T)he director of the CFPB is appointed by the President. This director can only be removed for cause, such as ‘inefficiency, neglect of duty or malfeasance.’ This structure, with the President having no discretion for removal, was found unconstitutional….
“Further changes are in the wind as imposed by the CFPB that will cause many small businesses to close.
“The changes to RESPA have caused tremendous consolidation in the real estate industry and have made the barriers to entry extremely expensive.
“Similar changes in the banking industry caused by CFPB regulation have made community banks merge or close. These regulations can only lead to higher costs for all of us.”
Has Dodd-Frank and the CFPB killed thousands of small banks – and made “Too Big to Fail” Big Banks even bigger? Does a bear excrete in the woods?
And this is DC. Just because something is obviously unconstitutional – and officially deemed so – doesn’t mean it goes away. Heavens no.…
“What’s especially illustrative thereof? When they say in their opinions that ‘X’ is unconstitutional – but then bizarrely rule that ‘X’ should be allowed to continue anyway.
“Or even worse? They rule ‘X’ unconstitutional. Then unconstitutionally pretend to be Congress – and unconstitutionally mandate ‘remedies’ to the constitutional problems they’ve rightly identified.”
“The following ruling showed the Court dipping its toe in the warm waters of Judicial Sanity – but then quickly withdrawing the digit.
“‘Supreme Court Says Over 200 Patent Judges Were Improperly Appointed:
“‘The Supreme Court ruled…(in United States v. Arthrex) that more than 200 administrative judges who hear patent disputes, some of them over billions of dollars, had been appointed in violation of the Constitution.’…
“The Court ruled these Executive Branch judges are illegal – because they are in the Executive Branch. But then posited as a ‘solution’ – having another member of the Executive Branch review their rulings.
“The Court’s ‘solution’ adds another layer of unconstitutional bureaucracy. It does not provide a remedy for the unconstitutionality the Court its own self identified.”
The Supreme Court ruled these Patent Trial and Appeal Board (PTAB) judges unconstitutional. But here they still are – being unconstitutional. And awful.
The DC Circuit Court – one rung below the Supremes – ruled the CFPB Director position unconstitutional. Not only is it still here – it’s massively expanding its ever-expansive power. Is Congress it all involved in the power grab – as the Constitution requires? Heavens no….
“Today, the Consumer Financial Protection Bureau (CFPB) proposed requiring certain nonbank financial firms to register with the CFPB when they become subject to certain local, state, or federal consumer financial protection agency or court orders. The CFPB has further proposed to publish the orders and company information via an online registry.”
Big Banks wrote Dodd-Frank and created the CFPB – to murder its small bank competitors. And it did.
Now into the gap created – have come “nonbank” payday lenders.
“Payday lenders move in – because there is no one else lending to poor people. Big Banks certainly don’t lend to poor people. In fact, Big Banks do as much as possible to do no business at all with poor people….
“In the name of ‘helping the Little Guy’ – DC Leftists are asking Big Government to murder what few competitors to Big Banks Big Government hasn’t already murdered.”
Congress is looking to help murder payday lenders.
And now the CFPB is looking to do even more of its part.
With massive news regulations – that magically do not apply to the Big Banks.
Including massive new anti-privacy reporting requirements – that magically do not apply to the Big Banks.
Not a shocker – once you realize….
This massive economic destruction – to the massive benefit of the Big Banks – ain’t a bug of DC’s policies. It’s a feature:
“Congress, in (unconstitutionally) creating the CFPB, tasked it with monitoring for risks to consumers in the offering or provision of consumer financial products and services and supervising the activities of certain nonbanks.”
That charter has NOTHING to do with ending “Too Big to Fail.”
It has EVERYTHING to do with exacerbating it.