CFPB Is Unconstitutional – Can We at Least Have Congress Provide Some Oversight? – RedState

Yet another terrible DC creation, the Consumer Financial Protection Bureau – CFPB.

The CFPB was the awful DC creation of another awful DC creation – the 2010 Dodd-Frank law, which DC extruded allegedly in the name of reining in “Too Big To Fail” banks after the 2008 housing crash and crisis.

Dodd Frank was the only one who did it exactly as opposed.

Dodd Frank – How Dodd Frank Kills Small Banks, and Hurts the Banking System

Dodd Frank’s Intended Consequence: Killing off Community BanksThese are the words:

“The banks deemed too big are more than 30% bigger than before the Act was passed in 2010, and 80% bigger than before the banking crisis of 2008….

“Meanwhile, their smaller competitors are struggling to survive. One credit union and community bank disappears per day. Access to local banking services is disappearing along with them.”

It has been extremely hard for The Little People (and anyone else) to work with banks.

“Small and medium-size businesses – the ones that hire two-thirds of new employees – are having trouble getting loans; students are struggling with sky-high interest rates; homeowners have been replaced by hedge funds acting as absentee landlords.

“And bank fees are up, increasing the rolls of the unbanked and underbanked, and driving them into the predatory arms of payday lenders.”

The Too-Big to Fail Giant People have no banking issues whatsoever.

DC Is Ensuring Only Billionaires Can Get a Loan  – In the Name of ‘Helping the Little Guy’

America’s Billionaires: Borrowing Their Way to Ever More Fabulous Fortunes:

“These loans, the Financial Times observes, currently add up to ’22.5 percent of the banks’ total loan books, up from 16.3 per cent in mid-2017.’…

“What makes banks like JPMorgan, Citi, and Morgan Stanley so eager to extend these billions in loans — to the rich — at such low interest rates? One reason is that the loans are as risk-free and risk-free possible.

“A more important reason: Big banks cherish close relationships with extremely rich people. These rich often run extremely large corporate empires and can steer their corporate banking business to the banks that cater to their personal needs.”

The CFPB is a key reason all the horrifying things that have happened are happening.

Consumer Financial Protection Bureau’s Tragic Failures

Five Ways CFPB Regulations Harm Middle Class

CFPB’s Payday Rule Will Hurt Consumers

Bigger government means that everything is going to be more expensive.  So bigger government makes everything a Giant People’s game.

And oh – there’s an additional, fundamental problem with the CFPB.

Supreme Court Rules CFPB Structure Unconstitutional

The CFPB must be eliminated.  But this is DC – where nothing government is ever abolished.  It doesn’t matter how inconstitutional it is.  No matter how large a portion of the private sector is destroyed by the government.

Therefore, Congress must at least limit the potential damage that the CFPB could cause.

It is possible to curtail some Dodd Frank provisions by using (bipartisan).

Trump signs bill rolling back Dodd Frank into law

But it became law in 2018, before the Supreme Court’s 2020 ruling.  So it didn’t properly address the CFPB’s unconstitutionality.

This would….

Senator Kevin Cramer and his colleagues introduce a bill to abolish the Consumer Financial Protection Bureau

Please.  God bless these people for aiming high – and trying to end what the Supreme Court ruled should be ended.

This bill was first announced in April.  It has not been implemented because DC is stubbornly unaware of reality.

So Cramer and Company have scaled back their ambitions….

Senator Cramer and his colleagues introduce legislation to subject CFPB to increased Congressional oversight:

“’The Consumer Financial Protection Bureau is a single-director agency that is less accountable to Congress because it is not subject to the regular appropriations process like other federal agencies,’ said Senator Cramer.

“‘Our legislation would allow for increased congressional oversight of this aggressive agency and ensure the people’s elected representatives have more say over the decisions coming out of Washington.’

“Currently, the Federal Reserve is required to provide practically whatever funding the CFPB requests.”

Because nothing says “less government” like one government bureaucracy funding another government bureaucracy.

And since it’s a bureaucracy self-dealing closed circle, Congress has absolutely no oversight or input whatsoever.

Cramer’s second bill would break that closed circle.

I would love Cramer’s first bill to become law.  I would really like Cramer’s second bill to become law.

We ask you to.

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