Trump is finally fixing this agency to kill the economy –

Trump is finally fixing this agency to kill the economy


President Trump's executive orders to drastically reduce the onerous regulations of the Obama era on the industry have been credited with the momentum of the sluggish economy and stock market momentum. But there is a mountain of bureaucratic paperwork that eluded his machete: the Consumer Financial Protection Bureau created by Obama. Until now.

Last week, the White House finally snatched control of the giant regulatory agency following the resignation of CFPB director Richard Cordray, appointed by Obama and a liberal Democrat who left his special post five years earlier to run for governor from Ohio. Trump installed his conservative budget director, Mick Mulvaney, to temporarily take over the powerful agency, which has the authority to determine the "fairness" of virtually all financial transactions in the United States.

On his first day at work, Mulvaney installed a 30-day freeze for all new hires and regulations at the CFPB, prompting a collective sigh of relief from the financial industry.

"It's a completely irresponsible agency, and I think that's wrong," Mulvaney explained. "If the law allowed this place not to exist, I would sit down with the president to try to show that other agencies can do this job well, if not more effectively."

Already regulated by half a dozen other federal laws, agencies and bankers have complained that the new agency has too much power, is too partisan and has abused its regulatory authority over the past six years. The Democrats of Congress established the CFPB in 2011 as part of the post-crisis financial review.

Although the majority agreed when the banks required more government oversight, concerns arose over the CFPB when its legal authority was exceeded and it began to crack down on car dealers. in addition to the mortgage lenders. It also focused on the credit reporting agencies for the first time, as they were transferred in the areas of debt collection, student loans, school credit cards and credit cooperatives, among others.

CFPB is a Democrat shop with an anti-business agenda that goes beyond protecting consumers

Industry badysts say that excessively harsh regulations and unreasonable sanctions have driven thousands of banks into bankruptcy, denying to many areas access to credit. To appease the army of CFPB regulators, they say, some banks for the first time have had to hire more compliance officers than credit officers, and they, in turn, have to pbad those compliance costs to clients in the form of tariffs. and higher finance.

CFPB advocates like former Democratic Rep. Barney Frank, who drafted the bill that created the watchdog agency, have tried to refute criticism by accusing Republicans of exaggerating overregulation complaints.

"In all the years since we created, they do not give a single example of abuse, they talk about an agency that is" out of control ", it is a" bureaucratic monster. "One would think there would be some horror stories. They would say: & # 39; And this is what they did wrong, created this kind of problem & # 39; "said Frank. "I hope people will ask these critics: what is an example of what they did wrong?"

Actually, there are many. Partisan politics is the main cause of complaint, even among former officials.

They say that CFPB is a democratic store with an anti-business agenda that goes far beyond protecting consumers and includes closing the "wealth gap" and managing "economic justice." "As Cordray liked to say, he hires almost exclusively Democrats and" rejects the Republican candidates to work, "according to former CFPB application attorney Ronald Rubin.Federal election data show that 100 percent of political donations made by CFPB employees during the 2016 elections were granted to Democratic candidates.

Not surprisingly, the agency:

  • Businessmen and representatives of the secret meetings industry reboot with which they are Democratic operatives, radical rights activists civilians, trial lawyers and other "community advisers", according to a report from the House Financial Services Committee.
  • Retained GMMB, the liberal advocacy group that created ads for the presidential campaigns of Obama and Hillary Clinton, for more than $ 40 million, making the Democratic store the sole recipient of CFPB advertising spending. [19659015] It met behind closed doors to develop a financial regulatory policy with notorious banking shakedown groups that have taken hundreds of thousands of dollars in federal money grants to break down complaints of housing discrimination and the loan, which in turn are fed back to CFPB, according to Business Daily and Judicial Watch.
  • channeled a large portion of the more than $ 5 billion in fines collected from defendants to community organizers aligned with the Democrats, "a fund for bribes under another name," said a consultant who worked with CFPB on his behalf. Penalty Fund and requested anonymity.

In addition, CFPB has secretly badembled databases of giant consumers that raise issues of individual privacy as well as corporate responsibility. One sweeps personal information from credit cards and another compiles data on up to 230 million mortgage applicants focusing on "race" and "ethnicity." Another database of consumer complaints contains more than 900,000 grievances against financial companies named without any investigation to determine their merit, says Alan Kaplinsky, senior compliance lawyer at Ballard Spahr LLP.

Before the departure of Cordray, CFPB was preparing to launch an offensive against banks that deny loans to "minority-owned businesses," according to a notice from CFPB and Ballard Spahr.

His departure gives Trump an opportunity to review the agency, which he calls "a disaster," as part of his sweeping regulatory reforms. According to the Federal Register, which records government regulations, Obama's surveillance rules reached a record high, imposing a cumulative burden of $ 890 billion on business.

On the contrary, Trump has promised to "put the regulation industry out of business," "What he says will lead to more jobs and higher wages."

"If you're wondering about your commitment to deregulation, do not you do it, "Mulvaney told a libertarian group earlier this year," because this is one of the things he uses again and again "at White House meetings.

Paul Sperry is the author of "The great American bank robbery: the unauthorized report on what really caused the great recession".

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