Skip to comments.Senate Democrats Push Costly New Regulation Scheme
Posted on 10/04/2011 7:55:23 PM PDT by LewPuller
In President Obamas recent address to the nation, he pledged to cut costly regulations to help promote economic growth. Of course, Obama had no intention of reducing government red tape. That is why he continues to demand the installation of a new regulator Richard Cordray to head the powerful Consumer Financial Protection Bureau (CFPB).
The CFPB was created by the Dodd-Franks financial reform bill. Sen. Dodd described the Bureau as a regulatory agency one like we have never seen before. The Bureau was given huge power to regulate much of the economy at the whims of its Director with little or no checks and balances from Congress.
Today at a Senate Banking Committee hearing we got a glimpse into some of the new regulations. The hearings made it clear that should Cordray be confirmed, his first regulatory target will be the consumer lending industry, often called payday lending.
One of the advocates of new regulations was Doug Fecher, the CEO of the Wright-Patterson Federal Credit Union. Fecher used the hearing as an opportunity to gain competitive advantage over his competitors. Calling for the confirmation of Cordray, he pushed government restrictions on payday lending. Of course, his credit union offers its own version of a payday loan, known as a stretch loan, that would be allowed under the proposed regulatory scheme. In other words, regulation would benefit Fecher and destroy his competitors.
Such is our future if the CFPB is allowed to regulate the economy. Just as President Obamas venture socialism allows the government to pick corporate winners and losers, the CFPB will do the same through regulations. Established companies like credit unions and big banks will drive small business competitors out of business thanks to consumer protection regulations.
The president never had any intention of cutting wasteful regulations and the only thing preventing a new round of costly government intervention in the marketplace is Senate Republicans promise to filibuster Cordrays nomination should it to the floor of the Senate.
Let’s just regulate our way to wealth.
Payday loans. Legal Loan Sharks.
No question. I'd never apply for a "payday loan".
But lots of people do. As lenders, they take risks that most lending institutions won't. There is a market for their services.
Consequently, I've no objection whatsoever to their existence.
Read this part of the article carefully.
The CFPB was created by the Dodd-Franks financial reform bill.
Sen. Dodd described the Bureau as a regulatory agency one like we have never seen before.”
The Bureau was given huge power to regulate much of the economy at the whims of its Director with little or no checks and balances from Congress.
At the whims of it’s director. Think of that.
With little or no checks and balances from Congress. Pretty much means with NO checks and balances from anyone.
a prime example of DC legislation originating with the DC bureaucrats...and to their ends. Basically Congress abdicating its function. 435 congresscritters can no longer control the bureaucracy.
Original Congressional apportionment was 1:30000. This would yield 10,000 Congressmembers-meeting electronically from thier districts. About the only way We the People will ever regain control over DC.