This is a great story, one of my favorites. The CFPB is an organization created by Elizabeth Warren of Fauxcahontis fame. It’s created to be funded by – the Federal Reserve – and not the government. It was set up so that it was rather autonomous. In fact, so much so that they had no congressional oversight. The new director (we’ll get to that in a moment) said, “I’m just learning about the powers that I have as acting director,” he added. “They would frighten most of you. They would probably worry you to think about how little oversight Congress has over me now as I’m the director, how little oversight the committees have over how CFPB functions.”
The old director, Richard Cordray resigned. He appointed his chief of staff as the new acting director. Trump, a critic of the agency, appointed his own director, Mick Mulvaney who has not had good things to say about the agency. Basically Trump put someone in charge of the agency that hates the agency. The outgoing leadership actually sued Trump saying he didn’t have the right to pick the successor. The court quickly pointed out that the agency is part of the Executive Branch which means it falls under the authority of the Chief Executive, President Trump. So, Trump, acting well within his authority, stuck it to them.
What is so bad about this agency other than the lack of oversight from Congress and the fact that they are married to the Federal Reserve? At this point, it’s just accusations, but it’s believed that they took the fine money they collected and gave it to liberal causes. Basically they find a business in violation of “predatory” lending laws under Dodd-Frank and say, “you can pay x amount in a fine, fight us in court, or make a donation to charity, here’s some we recommend.” Again, no proof of that but if there is truth to it, we can be sure Mulvaney will root it out. There is talk that if it’s bad enough the agency will simply be shuttered for good. Wouldn’t that be nice?!