GOP: This Consumer Financial “Protection” Bureau looks an awful lot like a “run-away regulator”
posted at 2:41 pm on December 14, 2012 by Erika Johnsen
While we’re slowly but surely seeing all of the ‘unexpected’ surprises of ObamaCare unfold, President Obama’s other crowning legislative achievement — the Dodd-Frank Wall Street Reform and Consumer Protection Act — is simultaneously being written out as well. Most unfortunately, the massive bureaucratic agenda being implemented by Dodd-Frank doesn’t seem to be producing rules and regulations any more efficient or certainty-inducing than its health-care brother.
The Consumer Financial Protection Bureau, the newly-created bureaucratic arm of Dodd-Frank, has come under a lot of fire for the relatively unchecked amount of authority it grants itself, and the House Oversight and Government Reform Committee is once again calling the Obama administration out on it.
The Hill reports:
The House Oversight Committee has accused the Consumer Financial Protection Bureau (CFPB) of having unchecked power and a vague mandate, giving it the potential to be a “run-away regulator unlike any other in American history.”
In a new report issued Friday, the GOP-led panel warned that with credit already becoming difficult to find for some lenders, the CFPB’s new regulatory oversight could further tighten it. It also suggests that the bureau may have an inappropriate relationship with the White House, adding that president may use it to “further its partisan agenda.” The report was issued by committee Chairman Darrell Issa (R-Calif.) and Rep. Patrick McHenry (R-N.C.), who chairs the subcommittee overseeing the bureau.
“At a time of prolonged economic strain, American consumers can ill-afford such an unaccountable, unresponsive, and all-powerful financial regulator,” the report states.
Dodd-Frank as it currently stands is going to allow for an unprecedented level of regulatory authority and freedom from Congressional oversight in the private sector — Congress is going to have to keep sounding the transparency-alarms on this one and disallow its economic impact from flying underneath the radar.