Re-visiting the Consumer Financial Protection Bureau

Many in the Cleveland Tea Party became aware of the mis-named Consumer Financial Protection Bureau when Ohio’s Richard Cordray was appointed as the Bureau’s first Director in 2012. I was hoping that President Trump would find a way to eliminate this agency, since it is not accountable to Congress or the Executive branch. This agency is now back in the news, since Elizabeth Warren has a chance at becoming the Democrat Party’s nominee for President. Lloyd Billingsley at Front Page Magazine has an update:

As announced this month, the U.S. Supreme Court will hear Seila Law v. Consumer Financial Protection Bureau. The case involves constitutional issues such as the separation of powers, but there’s a lot more going with this agency. As Judicial Fortitude author Peter J. Wallison notes, the CFPB is “the brainchild of Sen. Elizabeth Warren,” and that makes a case for closer examination.

Her claims to Cherokee ancestry have been exposed as a fraud, yet Warren remains a leading contender for the Democrat nomination for president. In her 2014 A Fighting Chance, Warren maintained the fake Cherokee claims and also billed herself as an economic expert.

Nobody in this country “got rich on his own,” she explains. Rather, “you moved goods on the roads the rest of us paid for” and used workers “the rest of us paid to educate.” You were safe in your factory “because of police and fire forces the rest of us paid for.” And so on, the same Big Brother view as POTUS 44. If people are in financial distress, Warren blames their problems on the banking industry, portrayed as the flywheel of capitalist greed and trickery. That view comes across in the structure of the CFPB.

As Wallison notes, the CFPB was given plenary authority to enforce all federal laws that apply to financial transactions with consumers, and more. CFPB power was “broadened beyond existing laws” to take enforcement action on any action it finds “unfair, deceptive, or abusive.” Since “abusive” is not defined, this served up “a vast field for the agency to define and pursue.” Wallison finds this a “dangerous step in support of an even more powerful and uncontrolled administrative state.”

For example, the CFPB director gets a five-year term fully protected from removal by the president other than for “inefficiency, neglect of duty, or malfeasance.” This places the director outside the control of the president, “whose ability to pursue the policies he was elected to implement depends crucially on the ability to remove and replace the senior officials of executive agencies.” Trump nominee Brett Kavanaugh is already on record that the CFPB director is the most powerful person in the federal government, aside from the president. And it gets worse.

The CFPB gets funding not from Congress but the Federal Reserve, and the money comes at the request of the CFPB director. And under the enabling Dodd-Frank legislation, the Fed has “no ability to affect the agency’s actions.” So Warren’s CFPB is beyond the control of Congress, and if the Supreme Court upholds the status quo, “it would be possible for Congress to create other agencies that are beyond the control of any elected body.”

. . .

The full article is here. Scary stuff.

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Richard Cordray and Operation Choke Point

image credit: americaswatchtower.com

Here’s some information about what Ohio gubernatorial candidate Richard Cordray was up to at the Consumer Financial Protection Bureau. Ken Blackwell at the Washington Examiner reported yesterday:

Operation Choke Point was a plot by President Obama’s Department of Justice, the Federal Deposit Insurance Commission, the Consumer Financial Protection Bureau, and other government agencies to cut off banking and financial services for small businesses and industries that they deemed to be political enemies or otherwise undesirable.

Some of these businesses included gun stores, ammunition shops, fireworks stores, small dollar lenders, and home-based charities.

Some government officials tried to deny the existence of the program. That includes former CFPB director, Richard Cordray, who dodged questions from Sen. Mike Crapo in 2014 as to the CFPB’s participation in Operation Choke Point. Yet in that same year, Cordray warned banks against doing business with “… unscrupulous lenders and their payment processors.”

Cordray was not alone in trying to hide the truth about this operation. Officials from the DOJ and FDIC all worked to keep the program’s existence from the public and to bury the truth. Finally, however, the truth is now being unmasked.

Government documents were just unsealed providing evidence of just how far reaching and destructive Operation Choke Point really was to small businesses.

. . .

With this new evidence, it has become even more clear how invested the Obama administration was in Operation Choke Point. If an industry stood against their political agenda, it was only a matter of bringing the full force of the administrative and regulatory state against that industry as a means of coercion and punishment. Operation Choke Point was “Chicago-style politics” brought to Washington, D.C.

Reps. Blaine Luetkemeyer, R-Mo., and Sean Duffy, R-Wis., have been leaders in exposing Operation Choke Point. And I cannot agree more Luetkemeyer’s reaction to the latest revelations when he said, “I am appalled by the blatant intimidation and bias employed by unelected bureaucrats to play partisan politics with the livelihood of our citizens. No matter your ideological leanings, the American government should not be able to destroy all that you have worked for.”

Read the rest here. Pretty ugly.

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In the news: Richard Cordray, candidate for Governor of Ohio

art credit: telegraph.co.uk

The Consumer Financial Protection Bureau was set up under the Obama administration, and it was designed to be exempt from checks and balances and accountability. An overview at Competitive Enterprise Institute sums it up in an article titled “Unconstitutionally Structured and Harmful to Consumers”; article is here.

Cleveland.com has a report by Eric Heisig with the headline

Consumer Financial Protection Bureau loses lawsuit

against Cleveland debt collection firm

A federal judge has ruled against the Consumer Financial Protection Bureau in a lawsuit it filed against Cleveland debt collection firm Weltman, Weinberg & Reis.

. . .

Senior U.S. District Judge Donald Nugent wrote in an opinion released Wednesday that the CFPB did not prove that Weltman, Weinberg & Reis sent demand letters that were false, misleading or deceptive.

The CFPB sued Cleveland firm Weltman, Weinberg & Reis in April 2017, saying the firm's attorneys were not sufficiently involved in sending out the letters, even though the letters prominently mention they were sent out by a law firm and occasionally raise the possibility of legal action for unpaid debts.

. . .

Nugent also wrote that Weltman, Weinberg & Reis sent out similar letters when Alan Weinberg was hired to collect debts for the state of Ohio between 2009 and 2011 under then-Attorney General Richard Cordray.

The point was significant because Cordray, a Democrat who is campaigning for Ohio governor, was the head of the CFPB between 2012 and last year. He was at the federal agency when it sued Weltman, Weinberg & Reis and authorized the lawsuit, the judge wrote.

The Cleveland firm considered calling Cordray as a witness during the trial, which took place before and after Ohio's primary elections, but chose not to do so.

…

Read the rest here. I haven’t followed this one, but I would not trust the CFPB under Cordray from here to the door. From the Wikipedia page:

On May 21, 2018, the bureau was weakened after US President Donald Trump signed into law Congressional legislation repealing the enforcement of automobiles lending rules.  On May 24, 2018, Trump signed into law further Congressional legislation exempting dozens of banks from the CFPB's regulations.

I wish President Trump would just shut the thing down. And Mr. Cordray is running for Governor. 

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Consumer Financial Protection Bureau and Richard Cordray

 image credit: americandigitalnews.com

From the L.A. Times:

The head of the Consumer Financial Protection Bureau formally called on Congress to sharply reduce his agency's authority. Among the suggestions he delivered Monday: Any major new rules the bureau makes should be subject to lawmakers' approval.

Mick Mulvaney — who has been an outspoken critic of the consumer protection bureau since before President Trump appointed him as its acting director last year — also wants Congress to change how the bureau is funded, make its director subject to dismissal by the president for any reason and create an inspector general specifically for it.

"The bureau is far too powerful, with previous little oversight of its activities," Mulvaney said in submitting his first report to Congress.

"The power wielded by the director of the bureau could all too easily be used to harm consumers, destroy businesses, or arbitrarily remake American financial markets," Mulvaney said as he sent the bureau's semiannual report to lawmakers ahead of hearings next week, adding that the changes he proposed would "establish meaningful accountability."

Can't Mulvaney and Congress just shut the thing down?

Note to Cleveland Tea Party readers: This is the agency that Richard Cordray ran for over five years. Now he is running for Governor of Ohio.

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Update on Richard Cordray and the Consumer Financial Protection Bureau

Dilbert (Scott Adams) cartoon via powerlineblog.com

Clarice Feldman closes her Sunday column at American Thinker with this summary:

Probably the most important development this week is the effective end of the CFPB (Consumer Financial Protection Bureau), a power grab by Democrats led by Massachusetts Senator Elizabeth Warren, which gives a single director who can only be fired for cause by the president (a structure designed to operate outside Congressional or executive control) power to regulate mortgages, credit cards, and retirement and pension investments -- in sum, all consumer financial transactions. Warren originally wanted to run this outfit, but when it was clear she’d never get Congressional approval, Richard Cordray became the one-man credit czar. Last October the Court of Appeals for the D.C. Circuit ruled that placing so much power in a single commissioner not answerable to the president was unconstitutional.

The Obama Administration sought en banc review by the entire Circuit Court Panel.  In March, the new administration reversed the government’s position. The entire panel heard the case in May. While the decision in that case is still pending, Cordray this week resigned, and the president appointed in his place OMB chief Mike Mulvaney as interim head. Mulvaney strongly opposed the creation of this bureau. The President thus has now put in place someone who can be counted on to undo the Democrats’ machinations to control all our financial transactions by the fiat of a single man. By their own hands, they created a situation they are powerless to undo -- just as by tarring Judge Moore with suspect accusations they open themselves to the same treatment. 

Richard Cordray has not yet confirmed his candidacy for Governor of Ohio, but the Cincinnati, Dayton, and Cleveland media expect him to announce soon.

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Cordray, the CFPB, and Ohio Governor Ohio race

Bob Gorrell cartoon credit: ww: ff.org

If this report is confirmed, it’s a start. From Kemberlee Kaye at Legal Insurrection:

Richard Cordray, an Obama appointee and head of the Consumer Financial Protection Bureau (CFPB) announced to staff in an email Wednesday his plans to resign. While he’s yet to confirm his plans, there’s speculation Cordray will return home to run for Ohio’s governorship.

The CFPB functions as, “a regulator set up in response to the 2008 financial crisis to police mortgages, credit cards and other financial products,” and was the brainchild of Massachusetts Democrat Senator Elizabeth Warren.

Unlike other agencies, due to the unique circumstanced through which the CFPB was created (was part of Dodd-Frank in 2010), Cordray answered to no one. As the bureau’s director, Cordray controlled the budget (other federal entities are subject to Congressional budget allocation), and was subject to no term limits.

“We are long overdue for new leadership at the CFPB, a [rogue] agency that has done more [to] hurt consumers than help them. The extreme overregulation it imposes on our economy leads to higher costs and less access to financial products and services, particularly for Americans with lower incomes,” said House Financial Services Chairman Jeb Hensarling, a Republican from Texas.

“Overdue for new leadership at the CFPB” at the CFPB? Sen. Hensarling, wouldn’t it be better to eliminate the “rogue agency” altogether?

Full report is here.

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The Consumer Financial Protection Czar and the Trump Administration

The Wall Street Journal has a report about the ill-advised Consumer Financial Protection Bureau (CFPB) and its director Richard Cordray. (The article link is to the CETUS website, since WSJ articles are usually behind a paywall). Cordray was appointed by the Obama administration in 2012 to head up this agency. Prior to that appointment, he had been Ohio Attorney General but had lost his Senate race against Mike DeWine.

In 2011, Cleveland Tea Party’s Ralph King pointed out that the position of the Director of the Consumer Financial Protection Bureau (CFPB) is, “in more accurate terms Consumer Financial Protection Czar”:

The director of the CFPB is empowered to regulate almost any industry for any reason and cannot be removed for any reason other than malfeasance. The position is a five-year term, so the next president will have to deal with Cordray regulating our economy, despite the president’s wishes.

And now that next president, President Trump is having to deal with it. And the Wall Street Journal (article titled “Trump to Cordray: You’re Not Fired”) reports that the “Treasury Department has made an excellent case for dismissal.” Further in:

The problem is that Mr. Cordray won’t accept curbs on his power. Dodd-Frank states that the President may remove the director only for “inefficiency, neglect of duty, or malfeasance in office” rather than at-will like other agency heads. Yet the report enumerates a litany of ways in which Mr. Cordray has flouted the law.

Treasury notes the “CFPB has avoided notice-and-comment rulemaking and instead relied to an unusual degree on enforcement actions and guidance documents.” The Administrative Procedure Act requires regulatory agencies to issue formal rule-makings, or at least formal guidance, to explicate law. Mr. Cordray says “facts and circumstances” guide the bureau’s legal interpretations.

. . .

Mr. Cordray’s term doesn’t end until July 2018, and implementing Treasury’s reforms as well as attendant rule-makings could take more than a year. Meantime, Mr. Cordray can continue shaking down businesses with enforcement that he hopes will propel his expected campaign for Governor in Ohio.

Some take-aways: The WSJ may point out the excellent case for Cordray’s dismissal (not to say the elimination of the agency itself), but it’s not about legal niceties, it’s all about politics and power. Mr. Trump is still surrounded by hostile deep state operatives, bureaucracies, and Congressional Uniparty opponents who ignore Obama Administration scandals and refuse to respect existing laws  (think Lynch, Comey, and the FBI; or Susan Rice unmasking of political opponents; or Lois Lerner’s IRS scandal, and on and on)….  So it may be obvious that Cordray and the CFPB are on the wrong side of the law, but The Uniparty and Corporate Media don’t much care. Trump is probably choosing his battles.

I decided to blog on this not only because the Consumer Financial Protection Bureau and its director represent more of the swamp to be drained, but also because Richard Cordray may very well run for Governor of Ohio. Voters should know what he’s been doing. The full WSJ report is here.  

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