Government is the key component in crony capitalism. One can not have crony capitalism without it. As such, in a highly crony economy like ours, regulators themselves often become cronies. Indeed much of the federal workforce is pretty much dedicated to cronyism in one form or another. There is money and power (for the bureaucracy) in regulating the economy to death. Assert this guidance. Hold up that permit. Is everything in triplicate? Have the lawyers reviewed your request? I’ll get back to you after the Columbus Day weekend, 2018.
(From Real Clear Politics)
One of the most notable occurred when the Consumer Financial Protection Bureau (CFPB) recently issued new rules governing short-term loans. It was the latest eruption of this regulatory agency volcano. The CFPB, created in response to the 2007-2008 financial crisis, was supposed to protect consumers from abusive banking practices. Instead, it has been the source and driver of the most aggressive, unchecked assault on American commerce in modern times.
In the six years the CFPB has operated, the agency has issued thousands of pages of rules and assessed billions of dollars in penalties. Sadly, these enforcement actions have done next to nothing to enhance “consumer protection.” For example, the CFPB fined Wells Fargo $100 million last year for opening over 3 million fake customer accounts. However, according to a recent Competitive Enterprise Institute (CEI) report, CEI exposed the inconvenient truth that CFPB did not uncover Wells Fargo’s egregious behavior. “The facts show that tension between the CFPB’s supervisory and enforcement arms led to a failure to catch Wells Fargo’s wrongdoing until after it was revealed in the media,” said CEI.
What’s equally disturbing is what the CFPB does with the fines they collect. According to the New York Post, “the Consumer Financial Protection Bureau continues to force financial institutions it prosecutes to donate to third-party community organizers. More, penalties in such cases are deposited into the Bureau’s now-$170 million-plus Civil Penalty Fund, which has, in turn, channeled almost $30 million to ‘consumer advocacy’ groups.” Many of these groups are aligned with the political left.
Last year, a federal appeals court ruled that the CFPB’s unaccountable governing structure was unconstitutional. The Trump Administration now needs to go a step further to eliminate this politically driven, rogue agency once and for all.