What do you really know about the Consumer Financial Protection Bureau? I tried to give you a start here. It is the brainchild of recession-era regulation ideas. As in, add another layer of regulation and that will stop the markets from crashing again.
Unlike other bureaus, the CFPB was unique in how it was set up: It had absolute authority. Essentially President Obama’s CFPB head acted on his own budget and authority outside the realm of Congress. It was an unprecedented move.
At the time, the belief was that a single head of the agency could not be swayed by political leanings. There is just one problem with that, they are appointed by politicians.
To make matters worse, the agency’s powers wore down local lending, created credit issues, and then overspent on its own renovations at headquarters. Who did they answer to? No one. That was absolute insanity.
As soon as President Trump came into office he took aim at the less-than-high-functioning agency. The liberals screamed bloody murder. Simply because the agency has the words “consumer” and “protection” in it, the public tends to believe it is there to help them.
No doubt the idea was meant to be an aid to the public. But, it became too twisted and contorted. So Trump sent in his guy, Mick Mulvaney. Mulvaney’s ideas aren’t as radical as you think. In fact, if Democrats were serious about making the bureau work, they would give in.
What is Mulvaney’s plan?
In April, Mulvaney had to go before Congress to give an update on plans for the future of the CFPB. Despite what the left-leaning press would tell you, he doesn’t want to burn the agency to the ground.
All year Mulvaney sent letters to the lawmakers with plans on how to turn the agency into a functioning piece of the legislative process. As of now, it answers to no one.
One letter outlined a simple change. The budget for the CFPB should be funded through Congress. That sounds simple enough. Yes, it will sway with each Congress, but better that than an agency that plays to the party line of the appointments.
That is another thing Mulvaney did not like. The president should have the ability to remove the head of the agency. They should have to answer for their work. This isn’t the Supreme Court. It isn’t the executive, judicial, legislative, and consumer protection branches of government.
Then Mulvaney did something in Congress I never expected. He asked for a bipartisan commission to head up the bureau. What!?! A Republican asking for an across-the-aisle republic solution to a Republican absolute monarchy? What is the world coming to?
If I thought that was the crazy news, I would stop there. It is not. Both Republican and Democrat senators yawned. No one cared! They had different reasons, but the idea was brushed away.
Forbes analysts explained that the other financial regulatory boards already function successfully this way. They have proven, with longer track records, to be effective.
It should be hard for me to believe that happened, but we are in the middle of the Congressional campaign season; so I am not shocked.
Either way, Trump’s CFPB head is attempting to move the bureau into a more accountable, democratic way. He should be thanked for it.
Why does Mulvaney matter?
In past articles, I summarized why the role of the CFPB matters to you. Read up again.
The reasons have not changed. The CFPB has created an unfortunate web where it supposed to hold banks accountable, but it does not do it fairly.
Smaller lenders and banks get hit the hardest with regulations. While the big banks can prosper, and lawyers can sue financial services for ridiculous sums.
While CFPB architect Sen. Elizabeth Warren swears she is for the working class, I ask how? The loans compromised by her bureau tend to favor the low- and middle-income earners. They shovel money to her attorney friends (who donate handsomely to Democratic campaigns).
Along comes Mick Mulvaney with a vision of opening finances back up to the poor and middling earners.
I agree it appears on face value that he is there for the millionaires. That is why Democrats wrote in the words “consumer” and “protection.” It helps camouflage the truth.
You can tell I am right because Mulvaney offered a bipartisan branch and Warren snapped it off.
Luckily, Trump’s guy isn’t done. These suggestions were just opening salvos. He will get his way because, as of now, the CFPB answers to no one.
Article last modified on July 23, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Trump’s Consumer Protection Bureau Chief Wants to Do What? - AMP.
Article last modified on July 23, 2018. Published by Debt.com, LLC .