The Consumer Protection Bureau created in the Dodd-Frank bill is very different from our other consumer protection agencies, of which we have too many to name. It is facing a legal challenge as a result.
The suit also challenges the law’s creation of a panel of regulators, the Financial Stability Oversight Council.
The main focus of the suit is the consumer bureau, which has been strongly opposed by many financial and business groups, as well as most Republicans in Congress.
This bureau operates as a government-within-a-governement under the sole auspices of the Executive Branch with their funds being supplied without limits or controls by the Feds. There is no oversight by the other branches of government and no appeal. This level of power in one branch of government is unprecedented.
Its independent director (Richard Cordray) operates unconstrained by the WH or the courts. He’s a mini-god.
There is no example of any such bureau with unbridled power and no constraints in the history of our country.
If you are one of the beleaguered financial institutions beset upon by this bureau, you will have no access to the democratic system – not the WH, the courts, the Congress – no due process. The consumer protection bureau of unelected officials will be the sole power and will act with full dictatorial powers.
The House and many business and consumer groups oppose the Bureau and its Director as unconstitutional because he was appointed during the House recess when they were NOT in recess. The House Republicans will try to block Cordray’s appointment at the same time that a legal challenge will be pursued.
Read more at LA Times