Obama wants to control your access to credit

The Dodd-Frank financial reform bill passed last year contains something every bit as dictatorial — and dangerous — as Obama’s unconstitutional “czars.”

I found out about it in an email I received from Senator Jerry Moran (R-KS) [boldface and first hyperlink added by me]:

This week I introduced commonsense legislation to reform the Consumer Financial Protection Bureau (CFPB). Better consumer protection is a shared goal of most lawmakers, but included in the Dodd-Frank Act passed by Congress last year was the CFBP, a new bureaucracy with the power to significantly affect the availability of credit. I introduced legislation this week that would restructure this new government agency so a variety of viewpoints would be considered when making rules to regulate the banking industry – rather than just the viewpoint of a single, unelected director. My bill would replace the single CFPB Director with a Senate-confirmed five-person commission – similar to the leadership structure of the Securities and Exchange Commission (SEC), Commodity Futures Trade Commission (CFTC) and Federal Trade Commission (FTC). Allowing a single unelected official to define their own jurisdiction and regulate vast segments of our economy without accountability or restraint is a “reform” that should be rejected.

My legislation would also allow Congress to better monitor the actions taken by the Bureau so banks and credit unions can continue to make responsible loans to creditworthy borrowers by subjecting the CFPB to the regular appropriations process. The Dodd-Frank Act currently allows the CFPB director to set his or her annual budget by withdrawing funds directly from the Federal Reserve, rather than going through the annual Congressional appropriations process like most independent agencies. The CFPB has more power and authority than almost any independent agency in history and asking them to present a budget to Congress for approval is a very modest request. Click here to read more about the legislation and click here to view my comments about this legislation at a hearing with U.S. Treasury Secretary Timothy Geithner.

I attended a recent town meeting held by Sen. Moran, and was extremely impressed with not only his amazing comprehension of financial matters, but his ability to explain them to laypeople such as me. I have always been impressed with his passionate commitment to fiscal responsibility; Moran has been working hard for Tea Party principles since before there was a Tea Party. He was one of the few Republicans to fight Pres. Bush and the House Republican leadership on the Medicare prescription drug program — despite representing a district with a huge over-65 population.

Moran, a small-town native, is a former banker himself, and understands very well how utterly vital access to credit is for families and businesses. His bill, S. 737, has been referred to the Senate Committee on Banking, Housing and Urban Affairs. Meanwhile, over in the House of Representatives, Rep. Michele Bachmann introduced legislation to repeal the whole Dodd-Frank Act:

Dodd-Frank grossly expanded the federal government beyond its jurisdictional boundaries. It gave Washington bureaucrats the power to interpret and enforce the legislation with little oversight,” said Rep. Bachmann….

“Dodd-Frank also failed to address the taxpayer-funded liabilities of Fannie Mae and Freddie Mac,” said Rep. Bachmann. “Real financial regulatory reform must deal with these lenders who were a leading cause of our economic recession. True reform must also end the bailout mindset that was perpetuated by the last Congress. I am proud to work towards repeal of Dodd-Frank because Congress must protect the taxpayers, instead of handing out favors to Wall Street.”

Rep. Bachmann’s legislation has been endorsed by the Club for Growth and Americans for Prosperity. Original co-sponsors include Rep. Darrell Issa (CA) of the Committee on Oversight and Government Reform, Rep. Todd Akin (MO), Rep. Tom McClintock (CA) and Rep. Bill Posey (FL).

That bill, H.R. 87, has been referred to the House Subcommittee on Commerce, Manufacturing and Trade.