The latest update from the once, largely unknown Consumer Financial Protection Bureau (CFPB), includes new revelations from a consultant who worked with CFPB on its Civil Penalty Fund. This individual claims the organization funneled a large portion of over $5 billion in collected penalties to “community organizers aligned with Democrats” as part of a giant slush fund.
CFPB was the brainchild of Senator Elizabeth Warren and was inserted into the Dodd Frank bill before it was passed. The legislation was ironically meant to reform the financial sector and protect the public from predatory and dangerous practices. The Hill shared:
The reins of the CFPB were recently handed over to Trump appointee Mick Mulvaney following the resignation of Director Richard Cordray, but not before Deputy Director Leandra English’s unsuccessful attempt to block Mulvaney’s appointment in a complaint filed against Trump and Mulvaley in a DC court.
The Washington, D.C. circuit court found the structure of the CFPB to be unconstitutional. More specifically, the court took issue with the inability for other arms of the government to review or rebuke the Bureau’s judgements or actions and the unilateral power imbued in the CFPB’s director—recently Richard Cordray.
The judgement states:
The Director enjoys significantly more unilateral power than any single member of any other independent agency. By “unilateral power,” we mean power that is not checked by the President or by other colleagues. Indeed, other than the President, the Director of the CFPB is the single most powerful official in the entire United States Government, at least when measured in terms of unilateral power.
The court then goes on to proclaim that the director of the CFPB is given more power and autonomy than the speaker of the house, senate majority leader, or even a Supreme Court justice. The CFPB became one of the most powerful agencies in D.C., with the ability to exercise enormous power over the U.S. economy while its budget remained unencumbered by congressional oversight.
Mulvaney’s first order of business was to institute a 30-day freeze on all new hiring and regulations.
Shining light on CFPBs’s practices are now uncovering everything from unreasonable ‘created’ penalties to amassing secret ledgers using these penalties to ‘launder’ funds into left-wing causes. Apparently, the CFPB awarding lucrative contracts to left-leaning organizations is nothing new. The CFPB awarded GMMB, the Obama-Hillary ad firm, a $14.7 million contract for “agency media and resource communication,” in June of 2017 and a $16 million payday to marketing materials about student loans and mortgages. GMMB became the sole recipient of CFPB’s advertising expenditure.
The CFPB also removed business owners and industry reps from secret meetings it’s held with Democrat operatives, radical civil-rights activists, trial lawyers and other “community advisers,” according to a report by the House Financial Services Committee.
Furthermore, the CFPB has assembled several massive consumer databases which raise privacy and corporate liability concerns. “One sweeps up personal credit card information and another compiles data on as many as 230 million mortgage applicants focusing on “race” and “ethnicity.”” reports The Hill. Another database contains over 900,000 unvetted grievances against financial companies. Think of a Google-sized database used solely by a rogue government.
“The Obama administration’s warrant-less collection of the private financial information of millions of Americans is mind-blowing. Is there anything that this administration thinks it can’t do?” said Judicial Watch President Tom Fitton. “These documents show that the Consumer Financial Protection Board is an out-of-control government agency that threatens the fundamental privacy and financial security of Americans. This is every bit as serious as the controversy over the NSA’s activities.”
Since the CFPB operates independently of the U.S. Government, a full audit of the agency’s balance sheet and practice policies have never been done. Hopefully this will be one of the first orders of business under Mulvaney’s leadership. Mulvaney has shared “It is a completely unaccountable agency, and I think that’s wrong,” and adding “If the law allowed this place not to exist, I’d sit down with the president to try to make the case that other agencies can do this job well if not more effectively.” Mulvaney also called the agency “a sad, sick joke.”
In this context, Mick Mulvaney appears to be the right tool for the President’s vow to “put the regulations industry out of business,” which he says will lead to higher employment and higher wages.
Trump: CFPB not dropping penalties against Wells Fargo, bank will be fined for mortgage issues
One of the CFPB’s ‘major achievements’ was the $100 million fine it levied on Wells Fargo last year after it was revealed that staff were opening accounts without customer consent. In September, Republican staff for the U.S. House of Representatives’ Financial Services Committee asked whether that settlement was too paltry.
In a report titled “Did the CFPB let Wells Fargo ‘Beat the Rap’?” Republican staff wrote that the CFPB might have had room to seek a penalty of $10 billion or more against Wells Fargo.
The committee’s policy director, Brian Johnson, joined Mulvaney last week as a senior adviser to the CFPB.
And, “If you’re wondering about Trump’s commitment to deregulation, don’t,” Mulvaney said in front of a libertarian gathering a few months ago, “because this is one of the things he pounds on again and again and again.”
More on Wells Fargo in the next chapter.
An anonymous person commented: I was an employee at Freddie Mac 2012/2013. After CFPB was established, there was a HUGE exodus of Freddie & Fannie employees that left to join the CFPB.
Their gig at the GSEs (government-sponsored enterprises) was being busted up, so they jumped ship to join another politically motivated “government” agency.CFPB Reportedly Funneled Billions Into “Secret Democrat Slush Fund”, Consultant Claims.
And another, The scope of fraud lately has so exponentially outstripped even Hollywood-level criminal masterminds that one has to wonder how it can continue.
Sources: Zerohedge, Washington Poast, The Hill, Judicial Watch, Reuters
Previous CFPB coverage: