Dodd-Frank: We’ve been clear where we stand with the Consumer Financial Protection Bureau, the swamp creature created by the 2010 Dodd-Frank law: It should be shut down. Barring that, it must be reined it. Trump’s doing that.
X It’s bad enough that the Obama-era CFPB has become a wet blanket on the small-business economy and on community banks, which increasingly find themselves tied up in costly CFPB red tape. But, thanks to CFPB mastermind Sen. Elizabeth Warren, the corrupt setup of the agency in effect turned it into a massive source of funding for left-wing groups.
Fortunately, CFPB Acting Director Mick Mulvaney is closing the political “slush fund” the CFPB bureaucracy runs, courtesy of the fines it levies on the businesses it regulates. It’s a great shakedown: the fines aren’t transferred to the U.S. Treasury, as is normal. Instead, they supposedly go to compensate “victims” and “educate” the public. In reality, the money is forked over to far-left community groups, that use it to enlarge their influence and political clout. In effect, the CFPB has become a funding tool for the far-left.
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It’s unclear how much the agency has spent and who exactly it’s going to. But the Competitive Enterprise Institute recently found that CFPB had given money to 593 far-left or liberal Democratic groups for each Republican or conservative group it gave to.
Such bias is indefensible, and worse than it even seems. As former IBD editor Paul Sperry wrote last month, the CFPB has:
- “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, (former CFPB enforcement attorney Ronald) Rubin says.
- Met behind closed doors to craft financial regulatory policy with notorious bank shakedown groups who have taken hundreds of thousands of dollars in federal grant money to gin up housing and lending discrimination complaints, which in turn are fed back to CFPB, according to Investor’s Business Daily and Judicial Watch.
- 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.”
That’s the face of corruption, and Mulvaney is ending it, at least the slush fund. We can only hope the Trump administration goes further, and gets rid of the corrupt CFPB entirely.
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