Skip to comments.Warren Fights For CFPB Again – Barack Obama’s Tax and Spend Club Band
Posted on 02/15/2013 10:44:59 AM PST by whitedog57
Senator Elizabeth Warren (D-MA) is fighting to protect her brainchild, the Consumer Financial Protection Bureau (CFPB). She also wants to support the nominated of Richard Cordray, the former Attorney General of Ohio, better known as Robocop for his attacks on banks and servicers over robosigning.
True, robosigning foreclosures is sloppy, but there were apparently no economic harm to borrowers (that is, 100% of borrowers defaulted on their loans and the banks/servicers were trying to claim the house to mitigate losses). Yet the Attorneys General settlement went ahead despite no economic harm to borrowers. The settlement provides as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government.
Wouldnt it have been less expensive to simply ban the practice of robosigning? Of course. The AG Settlement was more politics than economics. And that is my fear of Dodd-Frank and the Consumer Financial Protection Bureau more politics than economic reality.
Speaking of economic reality, the cost to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act more than tripled at four regulators in 2012 from 2011, the U.S. government accountability office (GAO) said in a report. In fact, the costs have more than tripled!
Source: Bloomberg Briefs
The CFPB costs have skyrocketed. They were around $300 million in 2012 and are expected to soar to $448 million in 2013. The SECs spending is expected to rise by a factor of 3. Nobody spends like government, particularly the CFPB in their mission to squelch private sector lending.
In fact, Senator Warren seems more interested in protecting her brainchild than in whether it is too costly or too restrictive.
Far too much power is vested in the sole CFPB director without any meaningful checks and balances, said Sen. Mike Crapo (Idaho), ranking Republican on the Senate banking committee, and Minority Leader Mitch McConnell (R-Ky.), in the letter. We will continue to oppose the consideration of any nominee . . . until key structural changes are made.
They had better curb the misguided and overtly political CFPB before it is too late.
Perhaps the CFPB should be adopt a theme song should be Were Barack Obamas tax and spend club band, we hope your kids enjoy the debt. I can almost hear Warren and Hillary Clinton singing along!
I don’t care who pursues punishing robo-signers, but it must be done.
Robo-signing was fraudulent and the feds bailed those jerks out