The Obama-era Consumer Financial Protection Bureau is about to go bye-bye.
Or least, become a lot less corrupt and a lot less partisan.
A consultant who worked with the agency said the organization poured a huge percentage of over $5 billion in penalties to “community organizers aligned with Democrats” as part of a massive slush fund.
The New York Post is reporting that the CFPB “funneled a large portion of the more than $5 billion in penalties collected from defendants to community organizers aligned with Democrats — “a slush fund by another name,” said a consultant who worked with CFPB on its Civil Penalty Fund and requested anonymity.”
We’ve known for a while that these Obama-era government agencies are often just fronts for liberal causes or liberal fundraising. But the CFPB was blatantly one-sided.
The Post reports that – among other things – it has ejected 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.
The bureau also retained GMMB, a left-wing advocacy group that created ads for the Obama and Hillary Clinton presidential campaigns, for more than $40 million, making the Democrat shop the sole recipient of CFPB’s advertising expenditure, the agency’s former enforcement attorney Ronald Rubin says.
Other sources report that the CFPB met behind closed doors to craft financial regulatory policy with notorious bank shakedown groups who have taken hundreds of thousands of dollars in federal grant money to gin up housing and lending discrimination complaints, which in turn are fed back to CFPB.
What’s more, CFPB has secretly assembled giant consumer databases that raise individual privacy as well as 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.” Yet another database of consumer complaints contains more than 900,000 grievances against named financial companies without any vetting to determine their merit, points out Alan Kaplinsky, lead regulatory compliance attorney at Ballard Spahr LLP.
Before Director Richard Cordray left, the CFPB was planning a massive crackdown on banks who denied loans to “minority-owned businesses.” Cordray was an Obama appointee and liberal Democrat who quit his special five-year post early to run for Ohio governor.
Trump installed his conservative budget director, Mick Mulvaney, to temporarily take over the powerful agency — which has the authority to determine the “fairness” of virtually every financial transaction in America.
On his first day on the job, Mulvaney instated a 30-day freeze on all new hiring and regulations at the CFPB, triggering a collective sigh of relief from the financial industry.
His exit gives Trump an opening to overhaul the agency, which he calls “a disaster,” as part of his sweeping regulatory reforms. According to the Federal Register, which records government regulations, rules on Obama’s watch hit an all-time high, imposing a cumulative burden of $890 billion on businesses.
In contrast, Trump has vowed to “put the regulations industry out of business,” which he says will lead to more jobs and higher wages.
“If you’re wondering about his commitment to deregulation, don’t,” Mulvaney told a libertarian group earlier this year, “because this is one of the things he pounds on again and again and again” in White House meetings.