Tuesday, September 28, 2021
HomeFeatured EntriesCFPB Fuels Income Gap

CFPB Fuels Income Gap

In between praise for the Occupy Wall Street Crowd and denunciations of the wealthy, President Obama and his congressional allies continue to push for the confirmation of the first head of the Consumer Financial Protection Bureau (CFPB). They argue that new regulatory agency will “police” Wall Street and help end the income disparity and “protect consumers” through more government regulations.

But being a government agency without proper checks and balances has some advantages – if you are a government employee. Judicial Watch has discovered that the CFPB is paying its employees exorbitant salaries well beyond those of other government agencies. This, of course, is a raw deal for the taxpayers.

Judicial Watch revealed that CFPB workers being hired at salaries twice the maximum ordinarily allowed under guidelines published each year by the Office of Personnel Management. A dozen new hires take home more than $225,000 a year, and a student intern is currently being paid $42,036 “through completion of education & study” as a communications trainee.
Judicial Watch revealed that CFPB workers being hired at salaries twice the maximum ordinarily allowed under guidelines published each year by the Office of Personnel Management. A dozen new hires take home more than $225,000 a year, and a student intern is currently being paid $42,036 “through completion of education & study” as a communications trainee.

Isn’t government and the CFPB supposed to end income disparity not exacerbate it? But the CFPB is not a regular government agency. It was designed to be different more powerful and, frankly, more destructive.

The CFPB was the baby of Elizabeth Warren, the partisan progressive now running for Senate in Massachusetts. The Director of the Bureau was given unprecedented authority to regulate the economy. J.W. Verret pointed out: Most independent agencies, such as the Federal Communications Commission and the Securities and Exchange Commission, operate under statutory bipartisan membership requirements. At least two of the five members are either Republicans or Democrats. The CFPB structure departs from that precedent. Likewise, other agencies are subjected to congressional oversight and funding restrictions. Not the CFPB, which is funded by the secretive Federal Reserve.

Without real checks and balances, Sen. Richard Shelby has rightfully drawn a line in the sand. He has organized Republican opposition in the Senate to the confirmation of the Bureau’s first Director, liberal trial lawyer Richard Cordray.

Cordray is cut from the same cloth as Elizabeth Warren and the Occupy Wall Street crowd. While Attorney General of Ohio, he furthered a scheme to “protect investors” by enriching securities litigation law firms who were empowered to sue on behest of the state. In return, the trial lawyers filled the coffers of the state Democratic Party.

If the Senate confirms Cordray, he will serve a full five-year term no matter who the next president is. He will have remarkable power to impose his personal regulatory agenda on the American people even if it is counter to the views of the president.

The problem with the American economy is not too little regulation. The problem is too many. Allowing a Richard Cordray to run amok with the power of a new federal agency would be disastrous.

2 COMMENTS

Leave a Reply

2 COMMENTS

  1. Thanks, Harold. There is so much under-the-radar activity going on with this administration it’s hard to keep up with it. Indeed, that’s why O had to bring in Cass Sunstein, just to orchestrate it all.

  1. Thanks, Harold. There is so much under-the-radar activity going on with this administration it’s hard to keep up with it. Indeed, that’s why O had to bring in Cass Sunstein, just to orchestrate it all.

Must Read