We Need Protection From the New Consumer Financial Protection Bureau

The "Bipartisan" Richard Cordray, Hopeful New Czar

Today, Politico had an interesting, partisan attack on the “obstructionist” Republicans who do not want to approve President Obama’s mid-term appointments, particularly the “bipartisan” Richard Cordray.

As an aside, to call the lifelong, partisan Democratic politician, Richard Cordray, a “bipartisan,” is dishonest.

It’s not about the appointment in any case. The GOP does not have a problem with Mr. Cordray per se. The real issue, is the fact that Cordray would be the sole person in charge of Obama’s new Consumer Financial Protection Bureau, which was formed as part of the financial bill, and which will have no oversight by anyone but the Executive Branch. It gives inordinate power to the Executive Branch.

We already have watchdog agencies and, to me, it would be preferable to see the existing agencies do their job instead of forming yet another government bureaucracy. However, the financial bill passed with this agency as part of it. Republicans hope to slow this Dodd-Frank monstrosity down until the election. Obama hopes to quickly grow it into a large government machine that cannot be reversed.

The worst of it is, and this is why Republicans are trying to stop it, there will be only one person in charge – Cordray for now – instead of a bipartisan panel. His powers will be as sweeping as the Obama Czars and monitoring will lie solely with the Executive Branch.

Worse still, the agency will have no congressional oversight over funding, and there will be full access to the Federal Reserve for all financial needs.

Republicans also want safety and soundness checks to avoid abuse by this new agency that could actually cause a bank/financial institution collapse.

Given the tendency of our government to lean towards massive, wasteful spending, it’s hard to imagine how anyone could think this is a good idea to say nothing of the fact that the Executive Branch is powerful enough.

The Republicans have been blocking recess appointments, however, President Obama may make the appointments under a questionable definition which allows the recess to be only one minute duration. Read here: Washington Post