Obama is now into credit card paperwork as one more power-grabbing initiative of his new Consumer Financial Protection Bureau, which was formed as part of the Dodd-Frank enormous government-in-charge-of-everything bill.
His agency wants credit card agreements made extremely simple, leaving banks and other lenders far more vulnerable to lawsuits. The reason those agreements are so elaborate is because of all the lawsuits the borrowers have caused, but no one wants to take any responsibility for that.
I would like to know how this insignificant change is going to help our economy and job situation. I guess it doesn’t matter because it is only the appearance of positive change and the demonization of lenders that matters in our land of sound bites.
Obama has nominated Richard Corday to head this new government agency.
In an op-ed piece in the Wall Street Journal this summer Senator Shelby called Cordray’s nomination “dead on arrival” unless 3 issues about the agency are addressed:
- The bureau should have a board of directors for oversight.
- The bureau should be subject “to the congressional appropriations process to ensure that it doesn’t engage in wasteful or unnecessary spending.”
- Bank regulators like the FDIC, the Federal Reserve and the Office of the Comptroller of the Currency could keep the CPFB from infringing on “the safety and soundness of financial institutions—as it would, for example, by unduly banning profitable products or imposing unwarranted and onerous regulations that threaten banks’ solvency.”