“Interim” -vs- “Acting”: White House Officially Announces Mulvaney to Head-Up CFPB…

The White House releases the official announcement that OMB Director Mick Mulvaney will head up the Consumer Financial Protection Board until a replacement is confirmed.  As previously discussednotice the verbiage:

WHITE HOUSE – Today, the President announced that he is designating Director of the Office of Management and Budget (OMB) Mick Mulvaney as Acting Director of the Consumer Financial Protection Bureau (CFPB). The President looks forward to seeing Director Mulvaney take a common sense approach to leading the CFPB’s dedicated staff, an approach that will empower consumers to make their own financial decisions and facilitate investment in our communities. Director Mulvaney will serve as Acting Director until a permanent director is nominated and confirmed.  (link)

(Reuters Story Link)

The CFPB was created to establish power and control over almost every financial transaction in the United States.  But it is only when you review how Elizabeth Warren and the control agents structured the czar head of the CFPB that you recognize the scale of the intent carried within the construct.

When Senator Elizabeth Warren and crew set up the Director of the CFPB, in the aftermath of the Dodd-Frank Act, they made it so that the appointed director can only be fired for cause by the President.

This design was so the Director could operate outside the control of congress and outside the control of the White House.  In essence the CFPB director position was created to work above the reach of any oversight; almost like a tenured position no-one could ever remove.

The position was intentionally put together so that he/she would be untouchable, and the ideologue occupying the position would work on the goals of the CFPB without any oversight.

Elizabeth Warren herself wanted to be the appointed director; however, the reality of her never passing senate confirmation made her drop out.

The CFPB Director has the power to regulate pensions, retirement investment, mortgages, bank loans, credit cards and essentially every aspect of all consumer financial transactions.

However, in response to legal challenges by Credit Unions and Mortgage providers, last October the DC Circuit Court of Appeals ruled that placing so much power in a single Czar or Commissioner was unconstitutional:

[…]  The five-year-old agency violates the Constitution’s separation of powers because too much power is in the hands of its director, found the U.S. Court of Appeals for the District of Columbia Circuit. Giving the president the power to get rid of the CFPB’s director and to oversee the agency would fix the situation, the court said. (more)

After the November 8th 2016 election (during the lame-duck Obama period), the CFPB sought an en blanc review of the decision by the circuit court panel.  However, in March the Trump administration reversed the government’s position.  In essence, Team Trump was now positioned to use the power of the CFPB Director to eliminate itself. The entire DC panel heard the appellate case in May and a decision is pending. [Either outcome Trump wins]

Facing insurmountable legal headwinds, and simultaneously finding himself under the control of the executive branch, the Obama Director of the CFPB Richard Cordray announced his resignation.

President Trump has now appointed OMB Director Mick Mulvaney as acting head of the agency; with no rush on a permanent replacement. [Mulvaney will return to his role as OMB Director as soon as a permanent replacement is nominated. Until then he wears two hats.]

While in congress Mick Mulvaney, along with dozens of Dodd Frank critics, strongly opposed the creation of the CFPB and the scope of control within its mandate to regulate all consumer financial transactions.  During his confirmation hearing Mulvaney referred to the CFPB as “one of the most offensive concepts” in the U.S. government and that he stood by an earlier comment describing it as a “sad, sick joke.”

The Democrats, most specifically Elizabeth “Pocahontas” Warren and crew, are apoplectic at the end result of their too-cute-by-half plans and the possibility of their agency being deconstructed.  What is even more delicious to note – in their rush to construct the entire CFPB scheme the Dodd-Frank law does not specify the deputy director as next in line to serve in the event of a vacancy.  That means President Trump is within his normal constitutional powers to appoint whomever he likes.

In appointing Mick Mulvaney President Trump has now put in place someone who can be counted on to deconstruct Warren’s leftist plan to control all our financial transactions by dictatorial fiat and unilateral authority.   By their own doing Pocahontas et al created a situation they are now powerless to stop.

Expanding the Consequence: This now becomes a critical part of President Trump and Treasury Secretary Mnuchin’s overall strategy to create a secondary financial market for smaller banks and credit unions to operate the Main Street economy.

Because Dodd-Frank Act created even fewer and even bigger banks it’s become almost impossible to re-institute something like a Glass Steagall wall between commercial and investment divisions within banks.

Back in July 2010 when Dodd-Frank banking regulation was passed into law, there were approximately 12 to 17 banks who fell under the definition of “too big to fail”.

Meaning 12 to 17 financial institutions could individually negatively impact the economy, and were going to force another TARP-type bailout if they failed in the future.  Dodd-Frank regulations were supposed to ensure financial security, and the elimination of risk via taxpayer bailouts, by placing mandatory minimums on how much secure capital was required to be held in order to operate “a bank”.

One large downside to Dodd-Frank was that in order to hold the required capital, all banks decreased lending to shore-up their liquid holdings and meet the regulatory minimums.  Without the ability to borrow funds, small businesses have a hard time raising money to create business.  Growth in the larger economy is hampered by the absence of capital.

Another downstream effect of banks needing to increase their liquid holdings was exponentially worse.  Less liquid large banks needed to purchase and absorb the financial assets of more liquid large banks in order to meet the regulatory requirements.

In 2010 there were approximately twelve “too big to fail banks”, and that was seen as a risk within the economy, and more broad-based banking competition was needed to be more secure.

Unfortunately, because of Dodd-Frank by 2016 those twelve banks had merged into only four even bigger banks that were now even bigger risks; albeit supposedly more financially secure in their liquid holdings.   This ‘less banks’ reality was opposite of the desired effect.

The four to six big banks (JP Morgan-Chase, Bank of America, Citigroup, Wells Fargo, US BanCorp and Mellon) now control $9+ trillion (that’s “TRILLION).  Their size is so enormous that small group now controls most of the U.S. financial market.

Because they control so much of the financial market, instituting a Glass-Steagall firewall between commercial and investment divisions (in addition to the Dodd-Frank liquid holding requirements), would mean the capability of small and mid-size businesses to get the loans needed to expand or even keep their operations running would stop.

2010’s “Too few, too big to fail” became 2016’s “EVEN FEWER, EVEN BIGGER to fail”.

That’s the underlying problem for a Glass-Steagall type of regulation now.  The Democrats created Dodd-Frank which: #1 generated constraints on the economy (less lending), #2 made fewer banking options available (banks merged), #3 made top banks even bigger.

This problem is why President Trump and Secretary Mnuchin are working to create a parallel banking system of community and credit union banks, individually less than $40 billion in assets, that are external to Dodd Frank regulations and can act as the primary commercial banks for small to mid-sized businesses.

The goal of “Glass Steagall”, ie. Commercial division -vs- Investment division, is created by generating an entirely new system of smaller banks under lowered regulation.  The ten U.S. “big banks” operate as “investment division banks” and are subject to the rules and regulations of Dodd-Frank.  The smaller banks and credit unions have less regulation and operate as the “Commercial Side” directly benefitting Main Street.

Instead of fire-walling an individual bank internally (within its organization), the Trump/Mnuchin plan firewalls the banking ‘system’ within the United States internally.

 

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65 Responses to “Interim” -vs- “Acting”: White House Officially Announces Mulvaney to Head-Up CFPB…

  1. lastinillinois says:

    I love what is going on.

    I really, really love what is going on.

    Liked by 40 people

  2. sundance says:

    Tomorrow morning, Senior Administration Officials will hold a background briefing on President Donald J. Trumps Designation of Mick Mulvaney as Acting Director of the CFPB. The briefing will be via conference call at 9:00AM EDT on November 25, 2017, and the information will be embargoed until the conclusion of the briefing.

    http://publicpool.kinja.com/subject-background-briefing-on-president-donald-j-tru-1820729887

    Liked by 24 people

  3. coco1050 says:

    Sundance? Why did I read an article about Cordray slipping a woman named English in as acting director?

    Liked by 3 people

  4. positron1352 says:

    Love Mulvaney. He’s smart and loyal to the administration.

    Liked by 17 people

    • Bee says:

      He’s one of the few people in DC that make me kick myself for not pursuing my interest in a Senate internship. Probably never would have been picked anyways but it is a door I wish I had tried. Trump has gotten me as excited about politics as I was when I first learned how government works when I was 8(?). I was the weird kid that paid attention every time the president talked but it was Clinton so I also had a nightly dose of shame.

      Liked by 7 people

      • TwoLaine says:

        He was slime before, on immigration and amnesty, and was planning to dupe his voters, but as long as he is watched closely and on President TRUMP’s side, I’m giving him a pass for now.

        Like

    • Ellen says:

      Sock it to ’em, Mick! This guy is awesome!

      Liked by 1 person

  5. Plain Jane says:

    Another Thanksgiving gift. Holy cow, even.

    Liked by 8 people

  6. litlbit2 says:

    Loans to the working folks. Finally exposed by a honest man President Trump.

    Currently very difficult to sell large ticket items when seller financing is inadequate. Creating a dealer sellers market with prices to match.
    Individuals will be able to sell to individuals that can qualify for loan monies. Eliminating the dealer being the only one with bank financing which keeps prices inflated for sales and deflated for trade-ins, by eliminating sellers.

    Liked by 11 people

    • Mongoose says:

      As if there isn’t already a “committee” of congress critters that already manage all the financial matters between lobbyists and their representatives, the financial institutions and all the laws and allowances that give them the bandwidth to do what they want with the public anyway? Why another Czar? Just crazy is what I think!

      Liked by 2 people

  7. Oldschool says:

    “How sweet it is”

    Liked by 5 people

  8. Grandma Covfefe says:

    Winning….more and more winning!! (I’m jumping for joy)
    Covfefe Rules
    MAGA
    Praise God
    Thank You, Lord, for President Trump and his MAGA Dream Team.
    From a Grateful Heart

    Liked by 17 people

  9. jeans2nd says:

    Re: Dodd-Frank – what was written here regarding Dodd-Frank is what they told us was the intention of Dodd-Frank. However, after listening to the retiring head of the FDIC, 14 Nov 2017, at the Brookings Institution, it would seem that the outcome – fewer, bigger banks – is the outcome actually intended by the bankers.

    These bankers are still talking about The Crisis, the 2008 crash. The bankers are praising themselves for having done such a good job at rescuing the banks in such a short period of time, and how they have kept the financial banking risk in the private sector and not on the banks. Their other topic was ensuring continuation of the regulations, which are regulations aimed at us, not them. Makes one wonder of the motivations of Pocahontas, no? And they tell us the corporations are bad. Will take a corporation any day over these ppl.

    Is that the sound of wailing, tearing of robes, and gnashing of teeth I hear at this news? Well played, Pres Trump, well-played.

    Liked by 6 people

  10. filia.aurea says:

    CFPB has evolved into a bureaucratic nightmare that serves the pig banksters. Needs trimming, management replaced, and staff re-focused. And please, let them all be English speaking.

    Liked by 8 people

  11. daughnworks247 says:

    Mulvaney is my hero!
    Ding, ding, Sundance wins again!

    Liked by 5 people

  12. WeThePeople2016 says:

    I really like Mick Mulvaney. He answers in clear, straight-forward concise sentences and I can understand what he is saying. He doesn’t mince words, and he is a really nice guy to boot. He also is very intelligent and he knows the budget inside and out.

    Liked by 19 people

    • NvMtnOldMan says:

      We- He was against it when he was in Congress. He said it was a sick, sick joke. Gee, Mick wanted to get rid of it and now he is the head of it. say goodbye to the CFPB. Also, Rick Perry was against the Energy Dept and is now in charge of it. Say goodbye to it also. Gotta love our Trump/

      Liked by 6 people

    • He’s always been that way. If he’s ever wrong, he admits to it too. He was always available to his constituents as well. Don’t have to agree on every issue, but he was a true representative of his district. The guy never stopped working.

      Liked by 3 people

  13. fleporeblog says:

    I absolutely love ❤️ that this will kill Pocahontas to her core! There is nothing she and the rest of the Uniparty Senators can do to stop 🛑 Mick Mulvaney from assuming this position. Mick has ultimate power and can implement our President and Mnuchin’s plan for smaller banks that will support small businesses with loans once they begin to expand. Couple that with Tax Reform and the sky is the limit for the Economic Train 🚂! It is incredible how our President is using their stupidity and greed to destroy them and support Main Street!

    Liked by 16 people

  14. William Ford says:

    Expect the Ninth Circuit to issue a stay on POTUS appointment of Mulvaney. It’s what the Swamp will do.

    Liked by 1 person

  15. Apollo says:

    Small correction: it’s “en banc” review by the circuit court, not “en blanc”.

    Liked by 3 people

  16. wheatietoo says:

    Calling this thing the “Consumer Financial Protection Bureau” was another example of Orwellian opposite-word speak…like the ‘Affordable Care Act’.
    The Left never seems to tire of using that ploy to try to cloak what they’re doing.

    Putting Mick Mulvaney in charge of this thing is similar to Pres Trump’s putting Scott Pruitt in charge of the EPA.
    Hah!
    As Atty Gen of OK…Pruitt had sued the EPA numerous times.
    Mulvaney is on record as having blasted this CFPB as a “sad, sick joke” and blew the whistle on what it’s real intent was.

    This is another brilliant example of our President putting us first.
    Putting the American people first…what a concept.

    I absolutely love our President!

    Liked by 16 people

  17. WSB says:

    Well looky here. Wikipooo already has this up…

    https://en.m.wikipedia.org/wiki/Leandra_English

    And no photo of Leandra, assistant Swamp creature.

    Liked by 1 person

  18. Whew, Okay.. I just read for about an hour, and it appears that POTUS has every right to appoint the next Director. Of course, I’m no legal scholar, but it seems apparent enough to my liking.

    Liked by 3 people

  19. GREENMIRROR says:

    Cordray is a five time jeopardy champion? I guess Alex will have some fun new answers for him.

    Like

  20. dizzymissl says:

    LOL, Pocahontas is flipping out

    Like

    • dizzymissl says:

      Like

      • TheLastDemocrat says:

        “serve” as acting director. Not “be” the director. IOW: placeholder, or interim.
        The law sez: the president, with congressional approval, appoints the director. IOW: the director gets named by the prez, and congress approves. That is it. End of story.

        Liked by 1 person

  21. LBB says:

    Newest article-
    snip
    “The fight has raised practical questions about how the agency would operate when its doors open on Monday.

    The White House has not been in touch with Leandra English, the deputy who Cordray put in charge, officials said, saying they expected she would be at work on Monday and continue as Mulvaney’s deputy.

    “We don’t have any reason to think that anything out of the ordinary course will happen: we think (Mulvaney) will show up Monday and he will go into the office and start working,” a senior administration official said.

    “We have gone out of our way to avoid an unnecessary legal battle with Mr. Cordray and his actions clearly indicate that he’s trying to provoke one,” another official said.

    The issue will likely be challenged in courts, which could mean “this enormous cloud of uncertainty” hangs over the CFPB in the meantime, said Alan Kaplinsky, who heads the Consumer Financial Services Group for Ballard Spahr LLP.”

    https://www.reuters.com/article/us-usa-trump-cfpb/trump-asserts-legal-power-in-fight-over-consumer-bureau-idUSKBN1DP0HE

    Like

  22. Deplorable Ukie says:

    For years, the so called Protection Bureau was forcing the American banks to waste time and effort on fighting their lawsuits, instead of putting new ideas and technology to serve their customers. Pocahontas famously lectured the Fed that the role of regulators was to punish the banks as would a cop on the beat. Keeping my fingers crossed that this dark time is over. Thank you, Mr President!

    Liked by 1 person

  23. TheLastDemocrat says:

    Big Picture: the communists try to wrest power away from the Constitution, from our representative democracy. However they can. By the U.N., by using some global committee to tell us how much energy we can expend (“global warming”), by racial quota requirements versus merit in various ways, and now by controlling banking out side of the purview of Congress and the Executive Branch.

    The communists hate the banks, but they sure buddy up with them a lot. Same as how they buddy up with Islam – the end goal is to bring down our society. Why? To the communists, the enemy is our society. The Holy Trinity of our society is this: free-trade independent contract/capitalism; Judeo-Christianity; and the Nukelar Family.

    Anything they do can be seen to be an attempt to cut the legs out of one of these essential societal forces. The banking thing gets at me and you being able to enter into a contract together, and use the government as a back-up to enforce legitimate contracts.

    Liked by 1 person

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