I Can't Believe We're Losing To These People

Republicans still hate consumers:

Republican senators vowed Thursday to block any nominee to lead the fledgling Consumer Financial Protection Bureau unless stronger limits are put on its power, in the latest blow in a long-running battle to rein in the watchdog agency before it officially launches this summer.

In a letter to President Obama, 44 lawmakers called for a board of directors to run the agency, rather than a single leader. The letter also demanded tougher oversight of the CFPB by existing banking regulators, such as the Financial Stability Oversight Council, and that the new agency be funded by congressional appropriations. Under the current structure, the CFPB’s budget is carved from the Federal Reserve.

“How the CFPB director exercises his or her authority . . . will have a profound influence on the future of our economy and job creation,” the letter said. Lead signatories were Senate Minority Leader Mitch McConnell (R-Ky.) and Sen. Richard C. Shelby (Ala.), ranking Republican on the Senate banking committee.

The proposals mirror three bills passed by the House Financial Services Committee a day earlier. Rep. Sean P. Duffy (R-Wis.), who sponsored one of the bills, said he believed that “the movement here on both sides of the aisle is to make sure we have a system that’s going to work for our consumers.”

But consumer advocacy groups lashed out at the proposals, arguing that they would give banks undue influence over the CFPB and jeopardize its independence.

“Enactment of these measures would virtually guarantee that the CFPB would be a weak and timid agency,” said Travis Plunkett, legislative director for the Consumer Federation of America.

I Can't Believe We're Losing To These People, Vol. 382

Sen. Richard C. Shelby (R-Ala.) recently accused Warren and the CFPB of leading “a regulatory shakedown,” because of their aggressive push for strict penalties against servicers in the pending settlement negotiations.

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Warren quickly encountered skepticism from House Republicans who criticized the broad powers granted to the new bureau and its seemingly untouchable budget, both of which they argued could lead to a lack of accountability and the creation of unnecessary and burdensome new regulations.

Fortunately, it sounds like Warren got in a few good licks herself:

“If there had been a cop on the beat with the authority to hold mortgage servicers accountable a half dozen years ago, if there had been a consumer agency in place, the problems in mortgage servicing would have been exposed early and fixed while they were still small, long before they became a national scandal,” Warren said in testimony before a House Financial Services subcommittee. She is the Obama administration’s point person for setting up the new Consumer Financial Protection Bureau.

If anything, Warren said, the uproar over shoddy foreclosure practices illustrated the need for an agency dedicated solely to protecting ordinary borrowers from abuses by lenders.

“I am glad that the consumer agency has been able to provide assistance in this important matter,” Warren said. “I thank Congress for creating this agency to provide a voice for American families. That’s why we’re here, and that’s what we’re doing.”