The Consumer Financial Protection Bureau (CPFB) was originally created by congress (Elizabeth Warren lead) as a quasi-constitutional watchdog agency to reach into the banking and financial system, under the guise of oversight, and extract money by fining entities for CFPB defined regulatory and/or compliance violations.
Essentially, the CFPB is a congressionally authorized far-left extortion scheme in the banking sector. The CFPB levies fines; the fines generate income; however, unlike traditional fines that go to the U.S. treasury, the CFBP fines are then redistributed to left-wing organizations to help fund their political activism.
The Consumer Financial Protection Bureau (CFPB) was the brainchild of Senator Elizabeth Warren as an outcome of the Dodd-Frank legislation. Within the CFPB Warren tried to set up the head of the agency, the Director, in a manner that that he/she would operate without oversight. Unfortunately, her dictatorial-fiat-design collapsed when challenged in court. Backstory #1 – Backstory #2
Previously, a federal court found the CFPB Director position held too much power and deemed it unconstitutional. The court decision noted that giving the President power to fire the Director would fix the constitutional problem. However, a second set of legal challenges targeted the core of the CFPB scheme, the financing.
WASHINGTON DC – An appeals court on Wednesday ruled that the Consumer Financial Protection Bureau’s funding mechanism is unconstitutional, in a victory for lenders that have targeted the agency’s structure in a years-long bid to tamp down regulation.
A three-judge panel of the 5th U.S. Circuit Court of Appeals ruled that the design of the CFPB violated the Constitution because it receives funding through the Federal Reserve, rather than appropriations legislation passed by Congress. Democrats established the structure when they created the CFPB in the 2010 Dodd-Frank law as a way to shield the bureau from political pressures that could impact its oversight of the finance industry.
The judges also vacated a 2017 small-dollar lending rule targeted by the payday lending advocates who brought the case — the Community Financial Services Association of America and the Consumer Service Alliance of Texas.
“Congress’s decision to abdicate its appropriations power under the Constitution, i.e., to cede its power of the purse to the Bureau, violates the Constitution’s structural separation of powers,” the judges wrote.
The appeals court ruling marked the latest victory for the finance industry, which has fought for years in Congress and the courts to blunt the CFPB’s reach and limit its ability to police financial services. Republican lawmakers have also worked for years to stifle the CFPB and revamp its structure, arguing the agency lacks accountability.
“Even among self-funded agencies, the Bureau is unique,” Judge Cory Wilson wrote Wednesday. “The Bureau’s perpetual self-directed, double-insulated funding structure goes a significant step further than that enjoyed by the other agencies on offer.”
The CFPB Wednesday declined to say whether it would appeal the decision to the full 5th Circuit. CFPB spokesperson Sam Gilford said “there is nothing novel or unusual about Congress’s decision to fund the CFPB outside of annual spending bills.” (read more)
Here’s where we remind everyone of the importance of regular budget appropriations. There hasn’t been a standard federal budgetary spending process in place since 2008. Every budget since Obama’s first term has been a series of continuous resolutions, omnibus spending bills and appropriations without regular order.
This has not been an accidental outcome.
Squaw speaks with forked tongue.
Always remember laws are for the other people. These are entitled criminals who believe they have no master, especially un-washed voters.
I believe that worm is about to turn. The wise man once said dictatorships are cool until you’re hanging from a lamppost.
<Squaw speaks with forked tongue.>
Every tine 🙂
The mouth moves you have confirmation. Bank on it.
We may need more lamp posts.
Impervious progs do what they want for as long as they want it. This revealed-liar just keeps on getting elected. Does anyone here care to offer a way around this flaw?
My suggestion only applies to senators. Repeal the 17th amendment to the constitution so that states select their senators.
Get out and vote!
LOL!!
One unconstitutional regulatory body down (judicially ruled upon)…a squillion more plus at least as many unconstitutional unilateral EOs to go.
Maybe we pronounced last rites on that old tattered document too soon.
Use it or lose it (The Constitution). We have allowed these swamp rats their criminal fiefdoms, thinking in the end we’re all Americans, when in truth they are anything but.
All three branches of government are corrupted and captured, this must change. I still have faith in the American people, we’ll see.
God Bless America!
We will see indeed, Stan. I’ve always said we, alone among any other country, are known by two names.
The United States…an out and out criminal cartel as is all too apparent.
And America…the good people who far outnumber the sellouts who live in DC and who work every single day not on our behalf, but on the behalf of those who line their pockets with insider trading, and , shall we call it, the selling of indulgences to anyone who has the money to pay for them.
We on the ground are America. May God continue in His great mercy to continue to shed His grace on us.
Amen, Sister.
Yes sir, my friend.
Get rid of one and two more seem to pop up.
Wow! Chock one up for the little guy. Now to do away with all un-elected regulatory busybodies.
Wait until we uncover all the landmines within the financial industry.
I’ve heard of an excess of 100 trillion of derivatives trades alone on the books to say nothing of everything else.
Almost all of Congress participates as members of organized crime. The DOJ/FBI enforces “Omertà.”
This is an insult to 1/1064th Native Americans.
This development will put Senator Karen Fauxcahontas on the war path!
She’ll demand to speak with the supervisor!
And head to the kitchen to “have me a beer.”
No more fire water for her. It is very unsquaw-like to drink it.
Better make it a two finger single malt.
No budget since 2008?
The Republicans are as complicit and guilty as the Democrats.
So very lucrative for the well connected and with fewer records to trace the funds. They all have their hands in it.
Omerta.
Be like some ME countries.
If you’re guilty of stealing – you lose the hand.
Fully agreed!
IMO There are no republicans.
Perhaps more so.
No budget since 2008? Well 0’Bama was too busy healing the air, land, and sea to deal with small details like that.
He was too busy trying to transform our way of Government & life, unfortunately he has mostly succeeded, especially in this his 3rd term!
Ryan PROMISED a return to order in writing spending bills when he became Speaker. Remember that?
That’s the part that everyone seems to very easily overlook… Who occupied that office in 2016-2020?
Oh… Yeah… Right!
Cue the propaganda machine…
That 2008 Budget was authorized by GW Bush on his way out. It contained funding for the TARP bailout program. 700 Billion dollars, later reduced to 475 Billion by the Dodd-Frank legislation. It was intended to be a One Time expenditure. But. Obongo and the Dems used a trick: By not having a “new” budget, the “last” budget remains in place, thereby giving them an “extra” 475 Billion every year Obungo was in office. That “extra” funding totaled 3.8 Trillion Dollars.
Dubya and 0’Bama are both creeps, but it took CK a while to reach that assessment for the former…
I figured out that Dubya was a creep when he started shilling for pointless wars in Afghanistan and Iraq, economic globalism, and bailouts for politically connected companies.
Dubya’s use of religious charities for administering federal welfare dollars corrupted those charities by making them beholden to the federal government.
These charities support illegal immigration because they are paid handsomely for administering federal aid to the illegals. Dubya was always a big fan of illegal immigration even though he would occasionally give lip service to opposing illegal immigration.
the last budget legally passed was FY 2008 budget passed in 2007….the bailout plan got INCREMENTALLY larger because under “baseline budgeting” and CR resolutions they give the government a COLA increase every year……you would not want those poor bureaucrats to lack funds at the end of the FY now would you?
Actually, YES!
And then that years budget became the “baseline budget” for the year after.
When you add in the ARRA/stimulus bill, almost $1T, that ALSO got added to the baseline, almost a 25% unappreciated increase in the budget.
Plain thievery.
I remember when President Trump appointed Mick Mulvaney as head of this agency. Mr. Mulvaney fired many people in this agency in hopes of cleaning it up. Nowadays, I guess this agency is back to its former self.
You have to kill the beast, not wound it.
Can you name a single federal agency that has been killed in recent memory? I’ll give you one minute.
Huh? I think that’s my point.
The Dims consider its one of their exclusive fiefdoms.
Yes they do. Add in Fannie Mae and Freddie Mac and between them they employ all the leftists waiting for their next election/campaign gig.
Mulvaney turned too.
Ol Highcheekbones McLiarface would better serve the American people by going to sell dreamcatchers at the truckstop before Gatlinburg, Tennessee rather than whatever she isn’t doing in Congress.
Rick Mulvaney briefed President Trump on the evils of the CFPB and, unfortunately, Trump wasn’t able to get rid of it without help from Congress. This is one of many turds needs to go away forever.
Great news but the fact is this is just a teaspoon out of the administrative state ocean. Long way to go to dismember the army of unelected official’s that rule over us.
How do you eat an apple? One bite at a time.
How appropriate, we have an orchard😊
As I understand it, if the bank donates it to the leftie group of choice, the fine is reduced.
I thought I read that President Trump was able to putba stop to that and force payment of the fine to the government. Guess I was wrong.
I read that too.. Probably got reversed on day one of the Biden admin.
We need bigger wins than this to overcome the Wild-eyed Squaw Wannabe and her cronies…after all, even the rest of the Socialists think Liz is off the reservation.
With all due respect, to quote our Resident in Chief , “this is a big f$$$ing deal!”
Let’s do the EPA next!
Might be a toss-up with the Department of Energy.
A target rich environment. All in due course.
Dept of Ed
Amen!
EPA. Look at the messes they have made on purpose trying to get control of all water in the USA. The Animas River running through Durango, CO in the arid West, was the color of a glass of Tang (very orange) with huge levels of Mercury showing up all the way down the mountain through Silverton and and Durango.
CFIUS … it’s on permanent launder cycle for Congress’ foreign cronies.
Nothing to see here folks….
Just another pile of..
Unfortunately, her dictatorial-fiat-design collapsed when challenged in court.
Fortunate for us though!
I think SCOTUS has sent the signal. Administrative State powers are out of bounds and to be checked.
https://www.newsweek.com/scotus-deals-blow-unaccountable-unelected-administrative-state-opinion-1721246
Thought PDJT was going to shutter that one.
He used Mulvaney to manage it into insignificance, but wasn’t able to utterly destroy it considering the circumstances.
I will have to look this up as I do not remember the names – but recall the whole “whose on first” merry-go-round when President Trump appointed Mulvaney director (after the former left), to this agency and the woman – who was next in line for the director position according to this agency’s rules and procedures, refused to acknowledge President Trump’s appointment, or to understand that she was not in charge, and around and around it went for quite some time!
Cannot recall the resolution either!
I believe Trump won that fight. Supreme Court ruling.
That was fun, Mia is correct, she lost, though I as well am fuzzy on the details, but it was indeed made clear that her claim to the throne was utterly fatuous.
Well aware of what he did. Those “circumstances” haven’t changed. On the contrary, the agencies are more powerful than ever.
At this point the Wall Street greedbags who run our financial system are probably all in on the CFPB agenda and will voluntarily implement it without oversight, just like they are voluntarily implementing ESG policies, Build Back Better and doing everything they can to destroy the fossil fuel industry.
………sigh. Another alphabet bureaucracy I had no idea about. But I’m glad the court called them out for being unconstitutional. These socialists are full of tricks to fund their further inroads on our republic.
SquatsWithRadicals
Since it’s been declared unconstitutional, will the agency be dissolved ?
Govt agencies never go away.
We might have to enforce it.
Something tells me the CFPB does not expend much oversight on BlackRock or StateStreet.
They mostly got what they paid for.
Too bad for them that others had different ideas.
What if someone sued to get a 14-year sustaining resolution as Congress’s abdication of its appropriations power under the Constitution?
By the shores of Gitchee Gumee,
By the shining Big-Sea-Water,
Stood the wigwam of Nokomis
Daughter of the Moon, Nokomis.
Dark behind it rose the forest,
Rose the black and gloomy pine trees,
Rose the firs with cones upon them;
Bright before it beat the water,
Beat the clear and sunny water,
Beat the shining Big-Sea-Water.
Lie – awatha is my favorite nickname for Warren.
Warren says that she will have a “young trans person” interview her future Secretary of Education and only hire this future secretary if the young trans person approves.
How is a future Secretary of Education “hers” ??
The term “budget” is much abused as regards federal spending. The President (OMB) does submit a budget to Congress every year. That “president’s Budget” is supposed to be analyzed by Budget Committees in each house, modified as desired, and passed out as a concurrent “Budget Resolution”. That resolution has to set levels 5 years out, but current Congressional practice is to go 10 years out. S. Con Res 14 of 2021 is the current one. Changes have to be made by so-called “resolution”.
The budget resolution, in turn, is supposed to provide “top line” (some might say bottom line) numbers to the “authorizing” committees and “appropriating” committees. Both committees make spending decisions so there is overlap. But it is the appropriations acts which actually provide money, so that is where most interest lies. And it appears to be Senate Democrat policy (which Mitch seems to have no problem with) not to pass regular appropriations, rather screw around and eventually pass “omnibus” appropriations, after various “government shutdown” scares.
13.5 billion in 2021
https://www.consumerfinance.gov/enforcement/enforcement-by-the-numbers/
BRAVO!
We The People need to seriously consider whether or not We need to put further fences and gates around the limited Federal government that We have established. This can be done by Our ‘representatives’ in the U.S. Congress proposing, passing, and getting ratified amendments that further limit their own power. Or it can be done by the People and States themselves through the ‘Convention of States’ process.
End non-accountable regulatory agencies by making those that fulfill Federal Constitutional roles advisory to Congress only. All rules, regulations, and standards must be passed into law by the elected ‘representatives’ that are accountable to We The People. Yes we expect you to be able to access information from others and use critical thought and reasoning to come up with determinations on diverse and complex issues.
Require that at the beginning of each Congress may do absolutely nothing until they pass a balanced budget appropriation. Nothing means no other legislation, hearings, investigations, vacations, recesses, junkets, etc. We expect you to work very hard for the people you are supposed to serve and represent.
Put measures in place that dissuade people from ever even thinking about making political office or government bureaucracy a lifetime career choice. We expect that our employee servants are choosing to do so out of sense of personal responsibility to the People of their Community, of their State, and of their Nation. That they will serve as Citizen Statesmen and then return to their farms, businesses, and labors beside the People they have served.
That Politico article says the decision is a victory for the finance industry, so, you know, DECISION BAD. I’m glad it at least mentions the GOP’s complaint: no accountability.
I wonder what all of the companies who were slapped with egregious fines already are able to do with this new ruling.
Remember when Trump appointed Office of Management and Budget director Mick Mulvaney to run the CFPB, and the Lunatics were absolutely beside themselves. Mulvaney wasted no time shutting off the cash flow pipeline, and there wasn’t a dam thing they could do about it. All pun intended.
Demanded his immediate presence before congress to account for his unilateral actions. So he showed up… yep, sat there basking in the fact that he had to show up, but nothing compelled him to answer any of their questions. Nothing…. zero oversight, and he laid it on as thick as molasses, and was having an absolute blast rubbing it in their faces.
It was priceless.
Let’s not forget that under Trump Mulvaney was moved from OMB to CFPB. To do what? I thought it was to kill the agency from the inside.
Tom Emmer
@RepTomEmmer
The Fifth Circuit rules that the CFPB, created by Elizabeth Warren via the Dodd-Frank Act, is unconstitutional and must be brought under congressional appropriations. Fortunately,
@FinancialCmte
has a plan for that.
Cont…
I had to look him up. He’s GOP. He won Bachmann’s old seat in MN
Rep Massie was on with Glenn Beck today and he wants to go back to spending bills.
He suggest passing a CR that would only kick in next Sept if they don’t get a regular budget put together….The CR would be 90% of this yr’s spending.
Interesting approach but I doubt it will fly
This is a very very good development.
Now go after the executive order creating the FBI. Unconstitutional.
What I love about this ruling is the knocking out of one of the Commie Dems methods of fining/money laundering funds to their personal coffers. It’s one toothpick of the pyramid of money laundering funds for both the Commie Dems and the GOPe. They’re all criminals.
Liawatha heap big mad now!
I worked in the mortgage industry in 2015 when the CFBP’s TILA-RESPA Integrated Disclosure (TRID) went into effect.
This created the current Loan Estimate that is provided to mortgage borrowers at the start of the mortgage process to provide an estimate of the mortgage costs. It also created the Closing Disclosure that is provided to borrowers at the end of the mortgage process to provide the actual final mortgage costs.
The previous iteration of the documents were known as the Good Faith Estimate (GFE) and the HUD Settlement Statement (HUD).
Under TRID, if the final costs exceeded the estimated costs by more than the allowed tolerance, the mortgage lender had to pay the borrowers the difference, which is known as a cure. The cure is basically free money for the borrower.
The regulations imposed by the CFPB’s TRID laws are onerous, but I do support limited, common sense regulations of the financial industry. The 2008 mortgage crisis is an excellent example of why common sense regulation is needed. This same mortgage crisis was actually used as one of the justifications for the creation of the corrupt CFPB.
The 2008 mortgage crisis was created by a toxic combination of greed, corruption, and stupidity.
The mortgage lenders responsible for this mortgage crisis were motivated by greed when they made reckless, high risk loans to uncreditworthy borrowers. The unqualified borrowers were also motivated by greed when they recklessly took on loans that they should have known that they could not repay.
The mortgage lenders were corrupt when they made these reckless, high risk loans because they knowingly passed on the risk of default for these loans to taxpayers when they sold them to the taxpayer subsidized Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac were corrupt for taking on the risk of these loans as they knew that they were leaving taxpayers on the hook for the risk of default.
The mortgage lenders were stupid for engaging in risky lending practices that they knew were unsustainable.
The borrowers were stupid for taking on mortgages that they should have known that they could not repay.
Fannie Mae and Freddie Mac were stupid for buying loans that they knew would eventually default.