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.


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It blows my mind that they created an agency outside if congressional oversight.

p0s3r on December 14, 2012 at 2:51 PM

…DEMOCRACY?

KOOLAID2 on December 14, 2012 at 2:53 PM

…whose protecting US?

KOOLAID2 on December 14, 2012 at 2:54 PM

Consumer Financial Protection Bureau (CFPB) of having unchecked power and a vague mandate…

…so how long before these Czar’s…etc…have their own police forces?

KOOLAID2 on December 14, 2012 at 2:56 PM

has come under a lot of fire for the relatively unchecked amount of authority it grants itself,

Hmmm, where have we heard this same story just recently? Oh yea… Erick Holders Department of Injustice becomes America’s Gestapo. Seems to be a reoccurring theme with the Obamanation that makes Desolate Administration.

SWalker on December 14, 2012 at 2:57 PM

vague mandate…

…so how long before these Czar’s…etc…have their own police forces?

KOOLAID2 on December 14, 2012 at 2:56 PM

Ummm, 3 years ago?

SWalker on December 14, 2012 at 2:58 PM

It’d be hard to beat the EPA when it comes to being a runaway regulator.

The Rogue Tomato on December 14, 2012 at 3:02 PM

sounds like another wing nut paranoia fever swamp dream

there is no such thing as runaway regulation.

/

tom daschle concerned on December 14, 2012 at 3:04 PM

The whole “Congress creates a body outside of Congress’ power” thing is total hogwash. All they have to do is pass another law saying that it is Federal crime, with 25-years in a Federal pen, to “act in the name of the CFPB” after the date of enactment. Then send in marshals.

cthulhu on December 14, 2012 at 3:06 PM

A good deal of tyranny goes by the name of protection.
Crystal Eastman

Speakup on December 14, 2012 at 3:07 PM

From here:

In a dictatorship, laws are passed by unelected government bureaucrats without reference to the will of the people, nor subject to review by elected representatives. So what’s the difference between that and our form of government? Today, not so much.

Our Founding fathers created by the Constitution a republic. In Art. I, Sec. I of the Constitution, they vested all legislative powers of our republic in Congress. The Founders further provided a framework that allowed Congress to, at any time, review prior law and, if appropriate, vote to repeal it. And most importantly, the Founding Fathers provided that each Congressman voting for or against the laws was directly subject to the ballot box. We no longer live in that world.

Today, Congress does not solely wield the legislative power of our nation. Indeed, Congress is very far from even being the most important source of our legislation. Our nation now most clearly resembles the socialist regulatory bureaucracy of the EU, where mountains of regulations with the full force and effect of law are passed by unelected bureacrats. In our nation today, individuals, businesses, and private and public organizations can be fined, sanctioned, forced to close, and jailed for violating federal regulations that have never been subject to a vote by our elected representatives, nor signed into law by the President. The genius of our Constitutional system of checks and balances is wholly obliterated in the tyranny of our modern the regulatory bureaucracy. . . .

Answer: Pass the REINS Act and give permanently back to Congress the power the Constitution provides

Wolf Howling on December 14, 2012 at 5:25 PM

I don’t see how the CFPB passes a constitutional challenge. I mean it’s clearly way over the line.

it will take decades for people to realize just how harmful and lawless the Obama-Pelosi-Reid regime has been.

exceller on December 14, 2012 at 5:31 PM

It blows my mind that they created an agency outside if congressional oversight.

That’s a feature, not a bug.
Fascists are uncomfortable having to comply with the precepts of a Federal Republic, and the oversight of elected representatives.
It’s so much easier when you can just go-around Congress.

Another Drew on December 14, 2012 at 5:35 PM

The first thing Congress could do (but won’t, since it would entail them actually having to do some real legislative work) is to pull back from the bureaucracy the authority to write implementing regulations.
If it’s not in the legislative language, it’s not a law; and if it’s not a law, it’s nothing.

Another Drew on December 14, 2012 at 5:38 PM

A burned man appears before you.

I have fought the talking points on the 2008 meltdown at every turn. I just finished a reply to some poor souls who was talking about The Repeal of Glass Steagall the way Democrats do, namely that it is the modern version of Mrs. Murphy’s cow or the Four Horsemen of the Apocalypse in semantic tableau form.

However, I can appreciate the need for regulation. The failure of MF Global, PFG Best and some other indications have me concerned.

For example there are derivatives amounting to 40 times the world’s GDP, according to at least one source. That is over $1.4 quadrillion for you guys with an imagination gigantic enough!

I don’t know what our administration is doing.

I hope to goodness someone does.

I pray for President Obama on things like this somewhere after the abortion and City of Detroit financial issues.

IlikedAUH2O on December 14, 2012 at 6:37 PM

Another agency added to the list and it makes me wonder what do all these agencies do? Do they make anything that is taxable? When you read the listing ask yourself this. ..(http://www.usa.gov/directory/federal/index.shtml)

mixplix on December 14, 2012 at 7:11 PM

You have to understand: when liberals use the word “protection,” they mean the same thing Tony Soprana means when he says it.

logis on December 14, 2012 at 7:57 PM

The tyranny of a prince in an oligarchy is not so dangerous to the public welfare as the apathy of a citizen in a democracy.

Charles de Montesquieu

Mimzey on December 14, 2012 at 8:13 PM

This is the crowning achievement of SENATOR Elizabeth Warren aka Fauxcahontas. She’s a darling of the left and a true Marxist. Welcome to the new Socialist States of America.

MJBrutus on December 15, 2012 at 7:12 AM

Not only is the CFPB free of Congressional oversight – it is free of Congress’s control of its purse strings.

The legislation made the Federal Reserve alone responsible for funding the CFPB; of course the Fed is independent of Congress as well so the circle is complete. An one unconstitutional agency funding another unconstitutional agency to act completely beyond Congressional control. What could possibly go wrong?

in_awe on December 16, 2012 at 5:41 PM