In a little noticed conference call between the White House and the media last week, the Obama Administration’s embrace of the Occupy Wall Street radicals went from the courting stage to a full-blown love-fest.
In an effort to force Senate Republicans to capitulate and confirm ethically challenged former Ohio Attorney General Richard Cordray to head a new regulation producing agency known as the Consumer Financial Protection Bureau (CFPB), Stephanie Cutter embraced Occupy Wall Street as the political reason Republicans should end their opposition to Cordray.
“The sentiments that lots of people who are out there as part of ‘Occupy Wall Street’ have — not just on Wall Street but on Main Streets across the country — those sentiments are shared by lots of Americans,” she said. “Having Richard Cordray in place obviously would help them.”
There you have it. Not only do we need a CFPB, according to the White House, we need a CFPB in order to help the Occupy Wall Street radicals burning cars, destroying property and defecating on police cars, or the man who died of a gunshot, (not to mention the sexual assaults) or the tuberculosis at
the squatter camp Occupy Atlanta.
First, it is critical to remember that Cordray is no “consumer” advocate. He is a crony-capitalist. His cronies were the securities litigators seeking windfall payouts from their lawsuits. Of course, hundreds of thousands of dollars in donations to the Ohio Democrat Party had nothing to do with the fact that Cordray deputized these firms to sue pension funds on behalf of the state.
Second, with the economy tanking, the last thing we need is another agency of government churning new federal regulations. But hey, the Democrats can continue to blame the banks for their inability to grow the economy.
Even though more regulation is exactly what the economy does not need, it is exactly what the CFPB is preparing to do.
At a recent congressional hearing, Raj Date, the interim head of the CFPB, released an 802-page report preparing the Bureau for a rash of regulations that will hinder the market.
This is the part where the regulation by consensus between the regulated and the regulators becomes regulation by force by bureaucrats who do not have the best interest of the industry (jobs and profits) at heart, but have empowerment of their position at heart and the general urge to disallow innovation and efficiency.
But the CFPB is one of the main agencies that pay their employees more than the $225,000 limit allowed by law. (They asked their pals, the regulators for waivers, and got them.) You see, the law is for you, but not for the government regulators.
Third, created as a government agency segregated from traditional oversight and congressional checks and balances, when the Bureau decides to regulate the economy, there is little anyone can do about it. If you are targeted, don’t turn to your congressman for help.
Why? The CFPB is funded without a single appropriation by Congress, the will of the people does not come into play, at all. The single source of funds for the CFPB is the Federal Reserve – who answers to no one, other than the Federal Reserve. (This single source funding will also further degrade the political position of the Federal Reserve; since the CFPB will become yet another issue act as a force to put legislative reform of the Federal Reserve on the table. Poor decisions, or politically motivated decisions by the CFPB, will feed the cries for we-really-need-to-pass-a-law to reform the Fed.)
Strangely, the White House is correct. Confirmation of Richard Cordray to head the CFPB will empower the Occupy Wall Street movement with a government agency modeled after its image – and it is exactly why Republicans should never allow Cordray to be confirmed in the U.S. Senate.