Wednesday 16 March 2011

CFPB, Warren face hostile GOP

Elizabeth Warren
Elizabeth Warren (Source: Mike Theiler/REUTERS)

If it wasn't already clear, it's becoming crystal: Republicans loathe Americans, at least those who aren't rich and don't make massive contributions to their campaign coffers. Seriously. How else can you explain actually fighting consumer protection? How else can you explain their aggressive actions on behalf of banks and credit card companies to continue to be able to screw consumers legally and without oversight? What could be more apple pie than consumer protection? If you're a Republican, or a banker, destroying it.
Elizabeth Warren, the Harvard law professor who championed the Consumer Financial Protection Bureau and is now in charge of setting it up, faces the hostile fire directly on Wednesday. Republicans running the House Financial Services Committee will press her to answer their concerns ? shared by banks and other business interests ? that the agency and its director will have unfettered power over financial products used by millions of people and might abuse it....

Echoing criticism from their business allies, GOP lawmakers want the new agency?s budget placed under Congress? control so lawmakers could threaten its financing if its actions displease them. Its money now comes from the self-financing Federal Reserve, which Congress plays no role in financing.

Republicans also want to dilute the bureau?s power by moving decision-making authority from a single director to a bipartisan, multi-member commission. Rep. Spencer Bachus, R-Ala., chairman of the House Financial Services Committee, was was preparing to introduce a bill with Rep. Shelley Moore Capito, R-W.Va., that would replace the director with a five-person commission with members from both political parties, according to a document obtained by The Associated Press

That's confirmed by Rep. Randy Neugebauer (R-Texas), chair of the House Financial Services Subcommittee on Investigations and Oversight in an interview with HuffPo, in which he said that "one of the three top priorities for his Republican colleagues this year" is to destroy the bureau's independence and weaken it beyond functioning. Says Neugbauer: "I'm just trying to get the ground I can get. I don't like them." He added, ?If they start saying, ?Well, I think a $25 overdraft fee is exorbitant,? there?s really not any appeal for that.... I?m just not a big fan of CFPB.?

Because, by all means, banks should be able to charge whatever fees they want for any transaction, and if you don't like it as a consumer, well, you just have to lump it. That's the Republican way. With the House GOP, the U.S. Chamber of Commerce, Wall Street and the entire financial industry lined up against Warren personally, and the whole idea of the CFPB in general, it'll be a miracle if the bureau emerges from this session of Congress intact.


Source: http://feeds.dailykos.com/~r/dailykos/index/~3/7Xat3XGpP40/-CFPB,-Warren-face-hostile-GOP

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