Republicans Press to Muzzle CFPB

Banker Resource
April 14, 2014 — 1,875 views  
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Conservatives are fuming at the Consumer Financial Protection Bureau (CFPB) owing to the presence of a socialist in its advisory board. They are pressing Congress to force more transparency on the workings of the bureau.

This started after one Congressional Republican was not permitted to attend the advisory committee's meetings. He subsequently filed legislation with a demand that the CFPB must follow all the open government rules which are applicable to other commissions.

Keeping on a leash

Paul Ryan, the Chairman of the House Budget Committee and a Wisconsin Republican brought forward the proposal of stripping the CFPB of independent funding. The proposal also included the aim of keeping it under the umbrella of congressional oversight.

The moves emphasize the way the new bureau has unwittingly being dragged into the scope and size of federal government and the plethora of regulations.

According to Mark Calabria, Director, Financial Regulation Studies, Cato Institute, it is a matter of concern that Ron Ehrenheich has been given a position on the Credit Union Advisory Council at the bureau. Mr. Enrenheich is the co-founder and CEO of Syracuse Cooperative Federal Credit Union. He was also the vice presidential candidate for Socialist Party USA in 1988. It is to be mentioned that the Cato Institute is a known libertarian organization.

Mr. Calabria has said that there should not be any political color to advisory board members,  but the appointment of Mr. Ehrenheich on the board is symbolic of a bigger concern that the CFPB has proactively invited people who have the same viewpoints to sit on the advisory boards. He said that he hoped to see people with broader view points in the board.

About the Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau was established in 2010 as a part of Dodd-Frank legislation which rewrote the financial oversight laws after the carnage of the Wall Street collapse in 2008. Democrats wanted CFPB to act as an independent auditor which will protect individuals from the predatory financial firms.

The bureau has changed the rules which govern mortgage lenders and has chased credit card firms for malpractices. It is presently engaged in making rules with a goal to rein in payday lenders and tackle issues that involve the providers of student loans.

In an interview with The Washington Times, Mr. Ehrenreich said that he was recommended to the CFPB by the National Federation of Community Development Credit Unions. He admitted being the only socialist in the advisory committees.

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