7 ms·

CFPB was just called out [1, 2] by Rep. Jeb Hensarling as unaccountable and a "rogue agency". The head of CFPB responded in an interview this morning [3]. Mr.

CFPB was just called out [1, 2] by Rep. Jeb Hensarling as unaccountable and a "rogue agency". The head of CFPB responded in an interview this morning [3]. Mr. Jiang, you'd better get your complaint in now before they're disbanded! [1] http://www.npr.org/2017/04/05/522756745/head-of-consumer-financial-protection-bureau-faces-lawmakers-this-week http://www.npr.org/2017/04/05/522756745/head-of-consumer-fin... [2] http://www.npr.org/2017/02/24/516983751/rep-jeb-hensarling-calls-consumer-financial-protection-bureau-a-rogue-agency http://www.npr.org/2017/02/24/516983751/rep-jeb-hensarling-c... [3] http://www.npr.org/2017/04/06/522826544/consumer-financial-protection-bureau-chief-responds-to-republican-critics http://www.npr.org/2017/04/06/522826544/consumer-financial-p...

dmix 10y ago
It says they want to replace the head guy and restructure the agency. This is why: > A 2013 press release from the House Services Committee (HSC) criticized the CFPB for what was described as a "radical structure" that "is controlled by a single individual who cannot be fired for poor performance and who exercises sole control over the agency, its hiring and its budget." Moreover, the HSC alleged a lack of financial transparency, lack of accountability to Congress or the President, and expressed particular concern about excessive travel costs and a $55 million renovation of CFPB headquarters that was more costly than "the entire annual construction and acquisition budget for GSA for the totality of federal buildings". Of course it sounds bad that they want to shut down a 'consumer protection' agency. But those sound like legitimate concerns. At a minimum a restructuring sounds like a good thing.
- undersuit 10y ago
  And then we look at the chairman of the committee, Jeb Hensarling, when the report was released: >A vocal critic of the Consumer Financial Protection Bureau (CFPB), he has received $183,400 from the payday lending industry since the beginning of 2013 (directly and through his political action committee), according to a report from the nonprofit Americans for Financial Reform. Why does Wikipedia mention his bribes from the payday lending industry? Because the CFPB is trying to make payday lenders not knowingly put their customers in inescapable debt[2,3]. [1] https://en.wikipedia.org/wiki/Jeb_Hensarling https://en.wikipedia.org/wiki/Jeb_Hensarling [2] https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-examines-payday-lending/ https://www.consumerfinance.gov/about-us/newsroom/consumer-f... [3] http://www.consumerreports.org/consumer-financial-protection-bureau/why-consumer-financial-protection-bureau-is-in-danger/ http://www.consumerreports.org/consumer-financial-protection...
  - dmix 10y ago
    How surprising. Not sure if that disproves the entire contents of the study done by the bi-partisan committee, but it's not adding any credibility. Which saddens me as there are legitimate problems in many of these regulatory agencies, but sadly the guys who fight against this stuff are often merely pawns for the interests of mega-corps. Rather than the interests of the general public and small/medium businesses owners who are most affected by bad policy. There's a reason only 6 mega banks are left following the 2008 crisis and hardly any small regional banks any more :/.
    - metaphorm 10y ago
      its not even a little surprising
    - liber8 10y ago
      The reason there aren't more regional banks is precisely because of all the regulations. I have represented numerous small banks over the last decade. Every single one of them has been sold to larger banks because they cannot compete due to the regulations, which require at least one, and more typically two compliance officers just to deal with the red tape created by the CFPB. These people don't contribute anything to the bottom line. The only way to become profitable is to get big enough that these compliance costs can be spread over more borrowers/account holders.
      - fictioncircle 10y ago
        > The reason there aren't more regional banks is precisely because of all the regulations. I have represented numerous small banks over the last decade. Every single one of them have been sold to larger banks because they cannot compete due to the regulations, which require at least one, and more typically two compliance officers just to deal with the red tape created by the CFPB. These people don't contribute anything to the bottom line. The only way to become profitable is to get big enough that these compliance costs can be spread over more borrowers/account holders. Counterpoint, a bank fraudulently sold a mortgage loan to Fannie Mae on a property I owned and I got it resolved via the CFPB instead of needing a lawyer and a court case. I'm not sure why "red tape" is a problem when it protects me from having 6 figure sums stolen from me by a private corporation without needing the court system.
- metaphorm 10y ago
  it sounds a lot like you just regurgitated Republican talking points
  - nickthemagicman 10y ago
    This thank you.
  - dmix 10y ago
    Speaking of partisanship, the NPR links above are just as equally regurgitating democrat talking points. Lacking any type of critical analysis of the agency and instead focused entirely on the silly talking points of the republican guy with some added snark. NPR is hard left, I at least quoted a study from a bi-partisan agency that I found on Wikipedia
    - metaphorm 10y ago
      > NPR is hard left you can't be serious. NPR is what the American media complex calls "liberal" which should be translated to "center-right by global and historical standards, but left of the extreme right wing of contemporary American politics".
      - lacampbell 10y ago
        I'm curious as to how you came to the conclusion that the US was center-right by global standards. Are you genuinely broadly familiar with all the governments of South America, the Middle East, Africa and Asia? Or are you just comparing it to a small handful of governments in North America and Western Europe? NZ is more left-wing than the US, though my hunch is that the left-wing here is much more US influenced than the right. IE, because the US dominates English-speaking media, and the left dominates US media (or at least the exported US media), that the local left seems to largely be driven by the issues and talking points of the american left. We even studied the US Civil Rights movement in our state run history class.
        metaphorm 10y ago
- nickthemagicman 10y ago
  These "issues" are all bullshit. It's a presidential appointed position like secretary of state of course it's got no accountability to congress. Lack of financial transparency? Vague and propogandish. Excessive travel costs? Vague and propogandish. Expensive renovation of headquarters more than GSA? (Insert random agency that it cost more than here.). THE GSA SAID THE COSTS WERE IN LINE WITH OTHER RENOVATION PROJECTS. https://www.bloomberg.com/news/articles/2014-07-10/republicans-use-iffy-math-to-attack-cfpb-office-renovation https://www.bloomberg.com/news/articles/2014-07-10/republica... Take your republican astroturfing brainwashed conservative zombie rhetoric somewhere else or at least have something (non-Breibart) to back up all of your bullshit claims. The CFPB is critical organization to help the little guy and one of the only resources they have to fight massive organizations taking advantage of them.
  - pbarnes_1 10y ago
    I tried to upvote you here but it's not possible.
    - nickthemagicman 10y ago
      Thank you!
- dv_dt 10y ago
  Compare and contrast to the board of governors of the Federal Reserve...
- fictioncircle 10y ago
  > Of course it sounds bad that they want to shut down a 'consumer protection' agency. But those sound like legitimate concerns. At a minimum a restructuring sounds like a good thing. If only the concerns weren't a bad joke disconnected from reality. > A 2013 press release from the House Services Committee (HSC) criticized the CFPB for what was described as a "radical structure" that "is controlled by a single individual who cannot be fired for poor performance He can be fired for poor performance (inefficiency) and the CFPB is hardly the only organization with this structure. So the idea it is radical and he cannot be fired for poor performance are both lies. https://www.bloomberg.com/view/articles/2017-01-13/why-trump-can-t-just-say-you-re-fired-to-this-official https://www.bloomberg.com/view/articles/2017-01-13/why-trump... > Here’s the legal background. Most federal agencies count as “executive,” meaning that their heads serve at the pleasure of the president. But some agencies are “independent” -- meaning that by law, the people in charge of them can be removed only for good cause, which Congress often specifies to mean “inefficiency, neglect of duty, or malfeasance in office.” > The Federal Reserve Board, the Federal Trade Commission and the Federal Communications Commission are independent agencies -- and so is the CFPB. Under the law, Cordray’s five-year term extends until July 2018. > Both Republican and Democratic presidents have not loved the idea of independent agencies, operating outside of their daily control. But in 1935, the Supreme Court unanimously agreed that the Constitution gives Congress the power to create such entities. The court has stuck with that position ever since -- and for decades no president has even tried to remove the heads of independent agencies ---- > Moreover, the HSC alleged a lack of financial transparency, lack of accountability to Congress or the President, and expressed particular concern about excessive travel costs and a $55 million renovation of CFPB headquarters that was more costly than "the entire annual construction and acquisition budget for GSA for the totality of federal buildings". https://www.gsa.gov/portal/content/128814 https://www.gsa.gov/portal/content/128814 > GSA Announces $947 Million Courthouse Investment Plan https://www.gsa.gov/portal/mediaId/128818/fileName/CourthouseSpendPlanBreakdown.action https://www.gsa.gov/portal/mediaId/128818/fileName/Courthous... > Toledo, Ohio > New Courthouse Annex / Ashley U.S.Courthouse Renovation > GSA’s plan allocates > $97,784,000 One court house is almost double the quoted number and the "Courthouse construction budget" over 10 years is ~$94.7 million / year. https://www.gsa.gov/graphics/staffoffices/FY2013_CONGRESSIONAL_JUSTIFICATION.pdf https://www.gsa.gov/graphics/staffoffices/FY2013_CONGRESSION... For 2013 btw: > $ 8,619,098,000 $8 billion dollar budget request > GSA requests $8,619 million in New Obligational Authority (NOA) for the Federal Buildings Fund. They had an $8 billion dollar budget and this joker is claiming it was the entire annual budget of the GSA? lol
- pbarnes_1 10y ago
  You're spouting bullsh*t.
cmurf 10y ago
Republicans increasingly find these government ombudsmans as rogue. Companies should get to accost their customers, and if the customers don't like it, take business elsewhere. If a contract is violated, hire a lawyer and sue. Good people have money and can hire good lawyers. If you don't have money, get in line for a pro bono lawyer. It's completely reasonable and fair to have to wait years for this; afterall rich people are better, and therefore they shouldn't have to wait their turn for justice, they can simply buy it. Justice is a product. That's basically where Republican ideology is at right now. It's openly hostile to anti-trust and anti-fraud law. Without those things, trust burns down. And that leads to dark places. But pretty much I think Republicans are that short sighted and stupid. They're totally consumed by the pursuit of money and exploitation, and are drunk on it.
- Arizhel 10y ago
  It's not just Republicans, it's all the Christians they're in league with, and who vote for them. The philosophy you describe is modern Christian theology. It's called "Prosperity Doctrine", and basically boils down to "God rewards those he loves the most", so rich people are better people than the rest of us because obviously God loves them more and has bestowed gifts of wealth upon them. Go into any American megachurch these days and this is what they're preaching. It dovetails very nicely with Republican trickle-down economics.
  - rrauenza 10y ago
    That's a pretty wide brush you're painting with, there. There isn't just "one" modern Christian theology.
    - thebooktocome 10y ago
      Name a modern American denomination that rejects prosperity theology.
      - vkou 10y ago
        Catholics.
Arizhel 10y ago
Yep, with the way things are going now, you can expect consumer protections to disappear and for companies like BofA to be able to steal your money left and right. (this isn't sarcasm, sadly)
pbarnes_1 10y ago
It's only "rogue" because it actually helps people.

dmix 10y ago

It says they want to replace the head guy and restructure the agency. This is why: > A 2013 press release from the House Services Committee (HSC) criticized the CFPB for what was described as a "radical structure" that "is controlled by a single individual who cannot be fired for poor performance and who exercises sole control over the agency, its hiring and its budget." Moreover, the HSC alleged a lack of financial transparency, lack of accountability to Congress or the President, and expressed particular concern about excessive travel costs and a $55 million renovation of CFPB headquarters that was more costly than "the entire annual construction and acquisition budget for GSA for the totality of federal buildings". Of course it sounds bad that they want to shut down a 'consumer protection' agency. But those sound like legitimate concerns. At a minimum a restructuring sounds like a good thing.

undersuit 10y ago
And then we look at the chairman of the committee, Jeb Hensarling, when the report was released: >A vocal critic of the Consumer Financial Protection Bureau (CFPB), he has received $183,400 from the payday lending industry since the beginning of 2013 (directly and through his political action committee), according to a report from the nonprofit Americans for Financial Reform. Why does Wikipedia mention his bribes from the payday lending industry? Because the CFPB is trying to make payday lenders not knowingly put their customers in inescapable debt[2,3]. [1] https://en.wikipedia.org/wiki/Jeb_Hensarling https://en.wikipedia.org/wiki/Jeb_Hensarling [2] https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-examines-payday-lending/ https://www.consumerfinance.gov/about-us/newsroom/consumer-f... [3] http://www.consumerreports.org/consumer-financial-protection-bureau/why-consumer-financial-protection-bureau-is-in-danger/ http://www.consumerreports.org/consumer-financial-protection...
- dmix 10y ago
  How surprising. Not sure if that disproves the entire contents of the study done by the bi-partisan committee, but it's not adding any credibility. Which saddens me as there are legitimate problems in many of these regulatory agencies, but sadly the guys who fight against this stuff are often merely pawns for the interests of mega-corps. Rather than the interests of the general public and small/medium businesses owners who are most affected by bad policy. There's a reason only 6 mega banks are left following the 2008 crisis and hardly any small regional banks any more :/.
  - metaphorm 10y ago
    its not even a little surprising
  - liber8 10y ago
    The reason there aren't more regional banks is precisely because of all the regulations. I have represented numerous small banks over the last decade. Every single one of them has been sold to larger banks because they cannot compete due to the regulations, which require at least one, and more typically two compliance officers just to deal with the red tape created by the CFPB. These people don't contribute anything to the bottom line. The only way to become profitable is to get big enough that these compliance costs can be spread over more borrowers/account holders.
    - fictioncircle 10y ago
      > The reason there aren't more regional banks is precisely because of all the regulations. I have represented numerous small banks over the last decade. Every single one of them have been sold to larger banks because they cannot compete due to the regulations, which require at least one, and more typically two compliance officers just to deal with the red tape created by the CFPB. These people don't contribute anything to the bottom line. The only way to become profitable is to get big enough that these compliance costs can be spread over more borrowers/account holders. Counterpoint, a bank fraudulently sold a mortgage loan to Fannie Mae on a property I owned and I got it resolved via the CFPB instead of needing a lawyer and a court case. I'm not sure why "red tape" is a problem when it protects me from having 6 figure sums stolen from me by a private corporation without needing the court system.
metaphorm 10y ago
it sounds a lot like you just regurgitated Republican talking points
- nickthemagicman 10y ago
  This thank you.
- dmix 10y ago
  Speaking of partisanship, the NPR links above are just as equally regurgitating democrat talking points. Lacking any type of critical analysis of the agency and instead focused entirely on the silly talking points of the republican guy with some added snark. NPR is hard left, I at least quoted a study from a bi-partisan agency that I found on Wikipedia
  - metaphorm 10y ago
    > NPR is hard left you can't be serious. NPR is what the American media complex calls "liberal" which should be translated to "center-right by global and historical standards, but left of the extreme right wing of contemporary American politics".
    - lacampbell 10y ago
      I'm curious as to how you came to the conclusion that the US was center-right by global standards. Are you genuinely broadly familiar with all the governments of South America, the Middle East, Africa and Asia? Or are you just comparing it to a small handful of governments in North America and Western Europe? NZ is more left-wing than the US, though my hunch is that the left-wing here is much more US influenced than the right. IE, because the US dominates English-speaking media, and the left dominates US media (or at least the exported US media), that the local left seems to largely be driven by the issues and talking points of the american left. We even studied the US Civil Rights movement in our state run history class.
      - metaphorm 10y ago
nickthemagicman 10y ago
These "issues" are all bullshit. It's a presidential appointed position like secretary of state of course it's got no accountability to congress. Lack of financial transparency? Vague and propogandish. Excessive travel costs? Vague and propogandish. Expensive renovation of headquarters more than GSA? (Insert random agency that it cost more than here.). THE GSA SAID THE COSTS WERE IN LINE WITH OTHER RENOVATION PROJECTS. https://www.bloomberg.com/news/articles/2014-07-10/republicans-use-iffy-math-to-attack-cfpb-office-renovation https://www.bloomberg.com/news/articles/2014-07-10/republica... Take your republican astroturfing brainwashed conservative zombie rhetoric somewhere else or at least have something (non-Breibart) to back up all of your bullshit claims. The CFPB is critical organization to help the little guy and one of the only resources they have to fight massive organizations taking advantage of them.
- pbarnes_1 10y ago
  I tried to upvote you here but it's not possible.
  - nickthemagicman 10y ago
    Thank you!
dv_dt 10y ago
Compare and contrast to the board of governors of the Federal Reserve...
fictioncircle 10y ago
> Of course it sounds bad that they want to shut down a 'consumer protection' agency. But those sound like legitimate concerns. At a minimum a restructuring sounds like a good thing. If only the concerns weren't a bad joke disconnected from reality. > A 2013 press release from the House Services Committee (HSC) criticized the CFPB for what was described as a "radical structure" that "is controlled by a single individual who cannot be fired for poor performance He can be fired for poor performance (inefficiency) and the CFPB is hardly the only organization with this structure. So the idea it is radical and he cannot be fired for poor performance are both lies. https://www.bloomberg.com/view/articles/2017-01-13/why-trump-can-t-just-say-you-re-fired-to-this-official https://www.bloomberg.com/view/articles/2017-01-13/why-trump... > Here’s the legal background. Most federal agencies count as “executive,” meaning that their heads serve at the pleasure of the president. But some agencies are “independent” -- meaning that by law, the people in charge of them can be removed only for good cause, which Congress often specifies to mean “inefficiency, neglect of duty, or malfeasance in office.” > The Federal Reserve Board, the Federal Trade Commission and the Federal Communications Commission are independent agencies -- and so is the CFPB. Under the law, Cordray’s five-year term extends until July 2018. > Both Republican and Democratic presidents have not loved the idea of independent agencies, operating outside of their daily control. But in 1935, the Supreme Court unanimously agreed that the Constitution gives Congress the power to create such entities. The court has stuck with that position ever since -- and for decades no president has even tried to remove the heads of independent agencies ---- > Moreover, the HSC alleged a lack of financial transparency, lack of accountability to Congress or the President, and expressed particular concern about excessive travel costs and a $55 million renovation of CFPB headquarters that was more costly than "the entire annual construction and acquisition budget for GSA for the totality of federal buildings". https://www.gsa.gov/portal/content/128814 https://www.gsa.gov/portal/content/128814 > GSA Announces $947 Million Courthouse Investment Plan https://www.gsa.gov/portal/mediaId/128818/fileName/CourthouseSpendPlanBreakdown.action https://www.gsa.gov/portal/mediaId/128818/fileName/Courthous... > Toledo, Ohio > New Courthouse Annex / Ashley U.S.Courthouse Renovation > GSA’s plan allocates > $97,784,000 One court house is almost double the quoted number and the "Courthouse construction budget" over 10 years is ~$94.7 million / year. https://www.gsa.gov/graphics/staffoffices/FY2013_CONGRESSIONAL_JUSTIFICATION.pdf https://www.gsa.gov/graphics/staffoffices/FY2013_CONGRESSION... For 2013 btw: > $ 8,619,098,000 $8 billion dollar budget request > GSA requests $8,619 million in New Obligational Authority (NOA) for the Federal Buildings Fund. They had an $8 billion dollar budget and this joker is claiming it was the entire annual budget of the GSA? lol
pbarnes_1 10y ago
You're spouting bullsh*t.

cmurf 10y ago

Republicans increasingly find these government ombudsmans as rogue. Companies should get to accost their customers, and if the customers don't like it, take business elsewhere. If a contract is violated, hire a lawyer and sue. Good people have money and can hire good lawyers. If you don't have money, get in line for a pro bono lawyer. It's completely reasonable and fair to have to wait years for this; afterall rich people are better, and therefore they shouldn't have to wait their turn for justice, they can simply buy it. Justice is a product. That's basically where Republican ideology is at right now. It's openly hostile to anti-trust and anti-fraud law. Without those things, trust burns down. And that leads to dark places. But pretty much I think Republicans are that short sighted and stupid. They're totally consumed by the pursuit of money and exploitation, and are drunk on it.

Arizhel 10y ago
It's not just Republicans, it's all the Christians they're in league with, and who vote for them. The philosophy you describe is modern Christian theology. It's called "Prosperity Doctrine", and basically boils down to "God rewards those he loves the most", so rich people are better people than the rest of us because obviously God loves them more and has bestowed gifts of wealth upon them. Go into any American megachurch these days and this is what they're preaching. It dovetails very nicely with Republican trickle-down economics.
- rrauenza 10y ago
  That's a pretty wide brush you're painting with, there. There isn't just "one" modern Christian theology.
  - thebooktocome 10y ago
    Name a modern American denomination that rejects prosperity theology.
    - vkou 10y ago
      Catholics.

Arizhel 10y ago

Yep, with the way things are going now, you can expect consumer protections to disappear and for companies like BofA to be able to steal your money left and right. (this isn't sarcasm, sadly)

pbarnes_1 10y ago

It's only "rogue" because it actually helps people.