The signature achievement of Elizabeth Warren while in the Senate has been the creation of the Consumer Protection Financial Bureau, or CFPB. It was created to act as a watchdog for the financial industry following the 2008-09 financial crisis. Now it’s all coming out what she’s allegedly responsible for doing and it’s not good.
Trump has appointed Mick Mulvaney to head the agency, a man who has called the agency a “joke” before, and said that he doesn’t believe it should even exist. I’m sure Warren must be thrilled. It’s a good thing too, because it means a man aware of the reality of the situation at the bureaucratic nightmare that if the CFPB. According to an explosive Wall Street Journal piece last year titled the “Consumer Financial Protection Racket,” the paper’s editorial board takes an ax to the law.
Instead of protecting consumers, the CFPB “has complied record of abuse rivaling that of Washington’s most entrenched bureaucracies and may be operating outside of the parameters of the Constitution, the WSJ editorial stated.
They quoted lawyers representing a mortgage lender called “PHH,” which had been appealing the CFPB increasing a $6.4 million penalty the firm already owed to an additional $105 million. How? It appears that they just created law out of thin air! “The President and the Congress have no control over this agency,” PHH’s lawyers stated in court. “The only check on this agency is right here, if it isn’t for the judiciary, this agency could do anything it wants.”
It’s arguably an unconstitutional agency – and one that has no problem wasting money. CFPB pays 56 employees more than the $199,700 Federal Reserve Board Chairman Ben Bernanke receives. Federal Reserve governors get $179,700, a figure exceeded by 111 CFPB workers. Six-figure salaries go to 741 employees, or 61% of the CFPB workforce, with one in four taking home $150,00 or more.
According to the Gateway Pundit, Warren has been allegedly operating a slush-fund.
“The New York Post’s Paul Sperry reports that the CFPB is engaged in a wide-variety of corruption. Everything from amassing secret ledgers to using penalties to ‘launder,’ funds into left-wing causes. Of course, because the CFPB operates independently of the U.S. Government, a full audit of the agency’s balance sheet have never been done. This sad reality may very well change under Mulvaney’s leadership.
According to the Post report, bounced business owners and industry reps from secret meetings it’s held with Democrat operatives, radical civil-rights activists, trial lawyers and other “community advisers,” according to a report by the House Financial Services Committee.
Retained GMMB, the liberal advocacy group that created ads for the Obama and Hillary Clinton presidential campaigns, for more than $40 million, making the Democrat shop the sole recipient of CFPB’s advertising expenditure.
Funneled a large portion of the more than $5 billion in penalties collected from defendants to community organizers aligned with Democrats — “a slush fund by another name,” said a consultant who worked with CFPB on its Civil Penalty Fund and requested anonymity.
Reports of the CFPB awarding lucrative contracts to left-leaning organizations is nothing new.
The CFPB awarded GMMB, the Obama-Hillary ad firm, a $14.7 million contract for “agency media and resource communication,” in June of 2017 and a $16 million payday to marketing materials about student loans and mortgages.”
The Post also discovered that the CFPB’s activity is raising more than a few privacy concerns. “CFPB has secretly assembled giant consumer databases that raise individual privacy as well as corporate liability concerns. One sweeps up personal credit card information and another compiles data on as many as 230 million mortgage applicants focusing on “race” and “ethnicity.”
While Ronald Reagan once observed that “nothing lasts longer than a temporary government program,” the CFPB was intended to be permanent and may now only be temporary. On his first day on the job, Mulvaney instituted a 30-day freeze on all new hiring and creating of new regulations at the CFPB. The banking industry breathed a sigh of relief when he did so, as they (and industry analysts) have long observed that some harsh and unjust regulations created and enforced by the agency had driven thousands of banks out of business.
The agency should’ve been eliminated long ago. It’s a relief that the captain of that ship appears to be heading deliberately into an iceberg.