Discussion: CFPB Ruled Unconstitutional

Anonymous · ‎10-12-2016

I'd like to open up discussion on todays revelation, it's consequences, and the future of the CFPB.

http://www.wsj.com/articles/federal-appeals-court-finds-structure-of-cfpb-unconstitutional-147619738...

redpat · ‎10-12-2016

Can't, Political!

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Anonymous · ‎10-12-2016

It's not a big deal. "Unconstitutional" is really clickbait. All it means it that the CFPB Director can now be removed by the President at will, which makes it basically the same as almost every other agency/cabinet member. It's bad in that the CFPB could now have more turnover at the director position. Otherwise, life moves on and I don't see this as a big impediment to the agency's purpose. The plaintiffs in the case wanted the whole agency dissolved but that's obviously legal baloney. Politically, whether the CFPB should be a thing, is another story. Legally Congress had the right to establish it and did.

gdale6 · ‎10-12-2016

@redpat wrote:
Can't, Political!

A basic discussion on the subject as it applies to the credit industry is just fine, it becomes taboo when one begins to advocate postions of the left or right.

Anonymous · ‎10-12-2016

As others have said, the holding of the case is that the structure is inappropriate to an independent agency. In the short term, the director of the CFPB will be removable at will by the president, which matches executive agencies, such as the cabinet level departments, FEMA, OMB, or the FBI. Independent agencies, on the other hand, have a commission. Usually, those positions are appointed by the president on a rotating basis. For example, the Federal Election Commission has 6 commissioners that each serve four year terms. By law, there must be 3 dems and 3 republicans on the Commission. The CFPB was meant to follow the latter model and there is a bill in congress to convert it to a commission structure. Overall, I wouldn't expect any changes as the CFPB affects us based on this ruling.

pipeguy · ‎10-12-2016

Here is another look at the same story: https://www.washingtonpost.com/news/get-there/wp/2016/10/11/federal-appeals-court-rules-the-structur...

I'm not going to comment much on this thread, because I'm in the trenches per se with this issue, just that the structure of the CFPB is NOT subjected to oversight as all other agencies are and that the money gained by CFPB actions is generally unacountable to the treasury (far from all of it is returned to consumers).

Personally, I believe the CFPB serves a good and vaulable purpose, but no oversight is a real problem because it allows actions that can only be checked by the courts and is open to political abuse (targeting).

Anonymous · ‎10-12-2016

@pipeguy How are you in the trenches? Do you mean you work in banking or with the Bureau?

pipeguy · ‎10-12-2016

@Anonymous wrote:
@pipeguy How are you in the trenches? Do you mean you work in banking or with the Bureau?

Neither, but I work on the hill and that's about as specific as I'll offer.

pipeguy · ‎10-12-2016

Here is the news from the "dark side" (needless to say they are happy):

http://www.insidearm.com/news/00042228-how-phh-decision-could-limit-cfpbs-enforc/