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Campbell writes: "The Trump administration has gone to court to try to bring the Consumer Financial Protection Bureau under its control. The bureau is an executive branch entity, but the president doesn't have direct control over the six-year-old agency."

Richard Cordray, director of the Consumer Financial Protection Bureau, testifies before a Senate committee last year. The Trump administration is trying to bring the independent bureau under the president's direct control. (photo: Alex Wong/Getty Images)
Richard Cordray, director of the Consumer Financial Protection Bureau, testifies before a Senate committee last year. The Trump administration is trying to bring the independent bureau under the president's direct control. (photo: Alex Wong/Getty Images)


Trump Administration Files Motion Aimed at Controlling Consumer Protection Agency

By Barbara Campbell, NPR

19 March 17

 

he Trump administration has gone to court to try to bring the Consumer Financial Protection Bureau under its control. The bureau is an executive branch entity, but the president doesn't have direct control over the six-year-old agency.

The Justice Department filed a brief with a federal appeals court in Washington on Friday, making the case that the structure of the agency violates the Constitution.

NPR's Chris Arnold reports that, by law, the head of the bureau can be fired by the president — but only for "inefficiency, neglect of duty or malfeasance." Chris adds:

"[The government argues that limit] means the consumer bureau could engage in 'extreme departures from the president's executive policy.'

"But that's exactly the point, argue the CFPB's defenders. They say that independence from political influence is crucial for a consumer watchdog regulator. Director Richard Cordray has said that preserving that independence is worth fighting for.

"Industry groups have objected to the Consumer Financial Protection Bureau since it was created under the Dodd-Frank Wall Street Reform Act."

Rep. Jeb Hensarling, R-Texas, the chairman of the House Financial Services Committee, told NPR last month that bureau policies have hurt consumers:

"Free checking at banks has been cut in half. Banking fees have gone up. Working people are finding it more difficult to get mortgages.

"The bottom line is the best consumer protection [is] competitive, innovative markets that are transparent. Now, they need to be vigorously policed for force and fraud, but the agencies that do that need to be accountable. And instead, we've had this agency ruled totally unaccountable. It is a rogue agency."

President Trump has larger targets in the financial services area, as NPR's Yuki Noguchi and Tamara Keith have reported:

"[Trump] signed two directives on [Feb. 3], ordering a review of financial industry regulations known as Dodd-Frank and halting implementation of a rule that requires financial advisers to act in the best interests of their clients, according to a senior administration official who briefed reporters on condition of anonymity.

"Trump himself made his intentions clear in a meeting with small business owners Monday. 'Dodd-Frank is a disaster,' Trump said. 'We're going to be doing a big number on Dodd-Frank.'

"These executive actions are the start of a Trump administration effort to reverse or revise financial regulations put in place by the Obama administration and seen by Trump and his advisers as onerous and ineffective."


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+3 # Caliban 2017-03-19 23:40
Donald Trump and the GOP - Pro-ownership and executives and Anti - ordinary working citizens and retirees.

How in xxxx did these clowns seize the highest office(s) in this great country anyway?
 
 
0 # librarian1984 2017-03-21 06:32
How did they seize the WH -- you mean other than the cowardice, neglect and abuse of the Democrats for the past 25 years? THIS is what happens when we have two corporate parties -- and from the actions of the Democrats, they seem okay with it.

They're not talking about healthcare, election integrity or jobs. They're letting these horrid cabinet members through and getting ready to lie down for Gorsuch.

And the ONE asset they have -- Bernie Sanders who, despite being treated like sh!te is STILL trying to help them/US -- they are running away from as fast as they can.

I would guess that has something to do with it.
 
 
+3 # rivervalley 2017-03-20 10:53
Don't let the labels fool you; the Democratic Party greased the wheels for their takeover, and judging buy their recent actions, are preparing to let them expand their majority in 2018. Trump is perfect for the 1%, while Progressives are an anathema.
 

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