CFPB structure ruled unconstitutional

[UglyCasanova]

http://www.theatlantic.com/business...bureaus-structure-is-unconstitutional/503660/


Surprised this didn't make bigger headlines, it certainly did in my industry. The CFPB's basic structure was ruled unconstitutional and Richard Cordray holds far too much power. This is far from a settled matter but still a really big deal. The CFPB was the financial regulating entity created out of Dodd-Frank and imo has done some good things as well as some not so good. Certainly a nice day for PHH though (a bit too late though).

 

[FelixDeCat]

Well, this news is definitely understated. I have agreed with the Consumer Finance Protection Bureau most of the time.

I was also glad to hear that they are about to crack down on payday lenders, the worst form of lending short of actual loan sharking.. It turns people into virtual slaves over a petty debt that mushrooms into thousands of dollars including perpetual fixed "refinancing" fees every 60 days or so along with interest rates in the 100s of percent.

I hope the CFPB survives outside political influence as we have long needed the ability to act outside powerful lobbying groups who no doubt had a hand in bringing this lawsuit to begin with.

Eventually we also need to see reform of bail bonds and title insurance. You should read about those two industries and the associated corruption.

 

[tweaker2]

"This autonomy has long been a sticking point for conservatives. In 2013, the financial services oversight committee objected to the lack of congressional input on the agency’s budget and more recently passed two bills to give Congress control over the Bureau’s budget. The Heritage Foundation, a conservative think tank, has called for dismantling the CFPB altogether."

That right there is not so much a reason to keep the CFPB from over-reaching its authority.

IMO, it's giving the Repubs in Congress the ability to tear the guts out of the Bureau, rendering it into an entity without purpose; a toothless, clawless tiger waiting for starvation to end its existence.

 

[glenn1]

"This autonomy has long been a sticking point for conservatives. In 2013, the financial services oversight committee objected to the lack of congressional input on the agency’s budget and more recently passed two bills to give Congress control over the Bureau’s budget. The Heritage Foundation, a conservative think tank, has called for dismantling the CFPB altogether."

That right there is not so much a reason to keep the CFPB from over-reaching its authority.

IMO, it's giving the Repubs in Congress the ability to tear the guts out of the Bureau, rendering it into an entity without purpose; a toothless, clawless tiger waiting for starvation to end its existence.

The Federal Reserve is managed by a board and that hasn't torn its guts out or rendered it without purpose. I don't agree the current arrangement is unconstitutional but it's certainly not a good idea.

 

[nickqt]

The Clinton Impeachment investigator, appointed by the President who shan't be named, issued this ruling. We'll see what happens en banc.

 

[SViscusi]

More specifically, the court took issue with the inability for other arms of the government to review or rebuke the Bureau’s judgements or actions and the unilateral power imbued in the CFPB’s director—currently Richard Cordray.

Given that the judge just passed a judgement on the agency, and Congress confirms both the nomination of the person running it as well as it's budget, this statement makes no sense.

 

[MongGrel]

Well, this news is definitely understated. I have agreed with the Consumer Finance Protection Bureau most of the time and I work in banking. If you work in finance these people put the fear of God in your heart!

I was also glad to hear that they are about to crack down on payday lenders, the worst form of lending short of actual loan sharking.. It turns people into virtual slaves over a petty debt that mushrooms into thousands of dollars including perpetual fixed "refinancing" fees every 60 days or so along with interest rates in the 100s of percent.

I hope the CFPB survives outside political influence as we have long needed the ability to act outside powerful lobbying groups who no doubt had a hand in bringing this lawsuit to begin with.

Eventually we also need to see reform of bail bonds and title insurance. You should read about those two industries and the associated corruption.

I thought you were all for Trump deregulating things all over ?

 

[tweaker2]

The Federal Reserve is managed by a board and that hasn't torn its guts out or rendered it without purpose. I don't agree the current arrangement is unconstitutional but it's certainly not a good idea.

Thanks for the clarification. Looked into it a bit more and found it interesting that the board is nominated by the president, confirmed by the Senate and serve for a period of 14 years.

You have broadened my knowledge base. :thumbs up:

 

[FelixDeCat]

I thought you were all for Trump deregulating things all over ?

Think of a rubber band. Too much regulation or deregulation is NEVER a good thing. Payday lenders, title companies in some states and bail bond companies across America are in desperate need of reform.