CFPB: The Bureau of Situational Social Justice
by Capitol ConfidentialWhen Sen. Dick Durbin (D-IL) was convinced by a retailing giant to enact legislation imposing price controls on credit card transactions he engineered a massive wealth transfer from credit card companies to retailers – a cost that would ultimately be borne by consumers. Opponents of Durbin’s fee warned of the consequences of his actions including increased costs for consumers and elimination of credit card incentive programs. As Milton Friedman said, “there is no free lunch.”
After the government imposed their fee cap, the marketplace responded predictably. Banks, including Bank of America, raised fees on consumers in order to cover the cost imposed by the Durbin Amendment. Caught with his tail between his legs, Durbin and his allies declared war on the banks. In a letter to the newly codified Consumer Financial Protection Bureau (CFPB), Durbin accused banks of trying to “sneak fees past” consumer and “urge[d]” the CFPB to “swiftly require financial institutions to post on their websites a standardized, concise and consumer-friendly disclosure form that lists the fees and key terms associated with checking accounts.”
Whether Durbin is successful in fighting back remains to be seen but what we do know is we now have a government agency at the disposal of elected officials that will police marketplace policies, fee structures and pricing decisions. If it’s not bad enough that the Bureau will make regulatory decisions based on the political whims of politicians, their own justification for regulations are worse. Much worse.
Testifying before Congress, Raj Date, the temporary head of the Bureau, laid the groundwork in an 802-page document not only for an avalanche of new regulations but their justification for them. The CFPB’s reasoning for new regulations constitutes nothing less than government imposing its version of social justice on the free market.
Date said that the CFPB would target “abusive” companies but refused to define what exactly abusive means. It is clear that abusive will be subjectively defined on a case-by-case basis – they will know it when they see it. Is a fee increase “abusive?” Based on the actions and rhetoric offer by Durbin, President Obama and the like, it is if that fee is unpopular. How else could they justify advocating government intervention to overturn bank fees?
Empowering an agency to implement the whims of any politician, much less leftists like Obama and Durbin is clearly dangerous. Throw in a little identity politics and you have a perfect storm of social justice toxicity.
As the Wall Street Journal pointed out that the bureau’s drive to regulate will “focus on consumers” and a “data-driven” and “consistent” approach. Some groups will get more attention than others, however—namely, ‘students, Older Americans, Service members, and the underserved.’ Underserved would seem to be a highly subjective standard.”
That is classic “social justice” lingo that treats Americans differently based upon their social status. In their worldview, students, service members and the “underserved” require special government protection. How is that equal protection under law?
Our economy is already suffering from the strain of costly and wasteful government regulations. Should the Senate confirm Richard Cordray, it will unleash a regulatory reign of terror and uncertainty in the name of social justice. It may make the leftists feel better but won’t create any jobs. But of course, jobs were never the point.
Email this to a friend | Print |
Share on Facebook
| Tweet this
| 
Follow Us on Twitter
Subscribe via RSS
Got a Tip?
97 Comments
Durbin the DOLT.
If Romney gets the nomination, I suggest all to vote for Obama next year.
That is the only way the Republicans will learn there lesson.
They have systematicaly tried to eat their own (Cain) as they see him as a threat to big government.
He isn't Cain would fall right in line, but they are worried enough to derail the Cain Train.
Tell me again that the govt isn't trying to control and mandate every aspect of the marketplace as it also tries to regulate an individual's life from cradle to grave.
Durbin truly is an idiot, no question there.
But Milton Friedman helped set up the wage confiscation that we now have in place, with the employer acting as a government agent, and removing taxes before you even receive your money. It was suppose to be temporary…
"CFPB would target “abusive” companies but refused to define what exactly abusive means."
That means they will target companies that do not contribute enough bribes to the administration.
They have followed the comunist manifesto to a T, free education etc. etc.
Free market only exists in Republican lingo- from healthcare to education, to the military industrial complex, big pharma, big oil, banking, energy, housing, agra industryetc. etc. its Washington controlled.
He's a Chicago idiot.
huh, i didn't know milton was around when social security was started. when social security was setup, they forced employers to pay half of social security, so the employees would be fooled into thinking that it wasn't so much money being deducted. but, employers also pay less to their employees, so they can hand over their half to uncle sam. so many people do not know, 15% off the top is taken from their pay, before the taxes are deducted.
Is this article 3 months old or what? Update: consumers win, the banks suffered the wrath of consumers and have since removed the new debit card fees.
Screw Durbin and screw conservatives. The people win despite those dolts.
it's clear for ALL to see.
GUBMINT is BAD for the economy…
here we come..
walkin down the street..
we get the funniest looks from..
everyone we meet..
HEY HEY WE'RE THE MONKEY'S
AND PEOPLE SAY WE MONKEY AROUND
BUT WE'RE TOO BUSY STEALING
AND YES WE'RE COMIN TO YOUR TOWN…!
The second dumbest thing the 111th congress dreamed up.
More nanny state "protect you from yourself" bull crap.
I want more of this, it only a matter of time before they are taking whats mine and giving it to others,,,,,,,,,,
oh wait, I am already there
The government isn't trying to control and mandate every aspect of the marketplace as it also tries to regulate an individual's life from cradle to grave.
Can't say you weren't told. Now get back to your delusions, you little rag-a-muffin. Lunch will be ready soon.
Ladies and gentlemen, what we have here is Socialism! Pure and simple! It is so comforting to know that we have agencies willing to spare us from having to make our own decisions in life! It IS WONDERFUL! Why should we let those silly businesses make the decisions when our Most Fair Omniscient Omnipotent Government can make those decisions for them? I feel SO blessed!
The recent market meltdown is NOT a failure of Capitalism, it IS a failure of Socialism. But that is all OK because more Socialism can correct it. Why resist? When rape is inevitable, lie back and enjoy it!
/sarc/ tag is off
Yep, putting the John Kerry clone in the oval office is not a good idea. And if my sources are correct, the establishment old boys club prefers rino Romney rather than Cain or Gingrich.
you are a " paranoid right winGER"
That's not happening
now click your heels together 3 times and say it with me
" theres no place like home"
Durbin played both sides of this, and is claiming victory.
He recently sent out an e-mail blast patting himself on the back for forcing BoA to back down from the $5/month fee with his petition drive.
So, he caused the problem, then took credit for fixing it.
Someone should explain to Dick that banks WILL get the money from somewhere.
You are too kind. Durbin has limited capability for conscience thought and is nothing more than a bio-system for a sphincter valve(PC).
Durbin may be an idiot but his plan to set up a takeover of all American banks was actually quite brilliant. First he forces them to take a financial hit by limiting their fees. Then he get Americans to hate banks when the costs of operation are passed on to customers. That's called "Win-Win".
Who's angry a Durbin and the Democrats? Who's angry at the banks? You may have noticed the thugs are called "#Occupy Wall Street" not "#Occupy the DNC".
In a few months there will be regulations put in place that will place banks under the complete control of the president effectively nationalizing them without a formal takeover.
Kudos.
And yet, with all this happening, the idiots at OWS will assume it is the BANKS that are evil.
Isn't this the problem with most who inhabit big government chubby-holes? They must justify their jobs so the can be included in next year's budget.
Or their product would be cheaper for the consumer, or they would have more to reinvest and create more jobs etc. Either way, it would be less money absorbed by the steaming pile in Washington.
Consumers didn't win. Consumers don't win against central banking and fiat money.
This Barney Frank bill with the Durbin amendment passed in a dim controlled house and senate with the toddler in the oval office. It needs to be repealed in Jan of 2013.
So now the banks will cut the interest they pay on CD's. Then Durbin will take to regulating interest rates and banks will fail. The people will get another "win" and again have less as a result.
Oh but conservatives love the nanny state, thanks to them we live in a secure "Homeland".
Touche Rick! I need to develop my verbal skills more.
Banks are in business to show a profit. And, since costs flow down hill, the consumer will eventually wind up footing the bill for the government's stupidity. It's that unintended consequence thingy that elitist progressives never consider let alone comprehend.
I was trying not to comment on his sexual perversions. But, I think your assessment is correct!
Let's see if I can follow your logic here. You want to "teach RINO's a lesson" by putting a liberal back into office. Isn't the reason we hate RINO's that they LOVE liberal policy?
You're not going to teach them anything by giving them exactly what they want in quantities they never dreamed possible.
This sounds like the demented thinking of a Ron Paul moon bat to me.
You really are an idiot, are you even remotely aware of the history of the patriot act?
Do you realize who authored it and why?
Do you realize that northeastern and left coast RINOs with the help of fascist liberals shoved it through?
Go read a book idiot.
This statement is just plain stupid "a cost that would ultimately be borne by consumers" The consumer is ultimately bearing the cost anyway.
Liberalism can never work: in order to force everything to be "equal", they have to treat people unequally. You can quote me on this.
You know you hit a nerve when you get downvoted for speaking the truth.
Assuming you're correct…and I'm not saying you aren't…can you tell me the difference between that and the National Socialist Party of Nazi Germany?
Which in effect means that employees are actually paying all that goes into their Social Security account. It would be interesting to know how many working stiffs are not aware of that.
The Democrats and Obama caused the financial crisis of 08 by supporting Fannie Mae and Freddie Mac and covering up their bad books. http://www.youtube.com/watch?v=ddExyFkfcfI&fe...
"The time is near at hand which must determine whether Americans are to be free men or slaves."
George Washington
When we have equality, what's theirs is theirs and what's yours is theirs.
LOL! "Winning" like Charlie Sheen! All the way to the poor house.
"Abusive" will come to mean whatever they want it to mean. And "donations"(bribes, mordida) pretty much sums it up based on what has happened within dim controlled states and the auto and greenie industries.
Clever are the ways the politician takes your money to give to another.
PROXY
It is all done by PROXY
except, there is no account with any name on it, other then uncle sam. all of the money paid "to" social security winds up in the general fund. and all checks written, are made from the general fund. they do track what you paid, but they don't keep it separate. and while newt was bragging about balancing the budget while he was speaker, he fails to mention, it was balanced only by using the social security money being paid in. so while we see official budgets, and deficits. they never mention that this includes the money paid into the system from people duped into thinking social security is kept separate.
well, not exactly. since the price of products also includes the corporate taxes, unemployment taxes, workmans comp costs, and any other fees all the different levels of government can force businesses to pay.
They did some years back, but our spendthrift congress could not to see any fund out of their greedy reach. The same happened with the added tax on avn fuel which was to be set aside to be used to improve airports, runways, and update the flight centers and RAPCON. They just had to grab it and spend it unwisely also.
We are going to be feeling the effects of the Democrats reign for terror for a long time. It's going to take years to undo all of the damage that these clowns have done. Barnies' Frank should be in jail for all of the damage he has done to the housing industry.
It is an axiom that Libs are low I.Q..
1. yes.
2. yes.
3. not completely true, and last time i checked the queen of the tea party michelle bachman loves the patriot act.
If you work for the government don't respond to this post.
Nice evasion…
1) History?
2) Who and Why?
3) Not true about Bachmann, she has called for restriction of the patriot act on several occasions, check your facts.
I don't work for the government, they're supposed to work for us not against us.
Wise up.
FDA, FCC, ATF, DEA, EPA, so on and so forth….
Nothing more than political firewalls to accomplish agendas that are bound to fail, or have already failed to clear the legitimate channels that are supposed to represent the will of the people. Makes life easier for the Intellectual Elite who feel the need to save us from ourselves.
Why is it that the MSM does not tell these stories? The people need to know just who it is that is screwing them. The idiots in Washington always want to point the finger at everyone else, but it is their failed policies that have caused the majority of problems in our country!
The CFPB absolutely must be elininated with the repeal of Dodd-Frank, Prez. ZERO (and his executive orders), O-Care and Democrap control of the Senate. Then a purge of all marxists from all levels of government would be possible.
I guess that one reason that libs (like Elizabeth Warren) are so butt ugly is that the evil within them just oozes to the surface. It is disgusting.
The simple solution is to cancel your cards, be frugal, save, and pay as you go. We finally focused and paid off our credit cards after years of paying the minumum. Never again. Anyone who uses credit cards is an idiot. [I know, I was one] I can't think of one thing I used the cards for that I couldn't have waited for, saved up, and paid in full. We want everything now, and that's this country's problem.
It is simple. The LSM is run by our government. It is called FCC!
I'm with you.
None of the morons on this list have ever read anything by Karl Marx. They read only what angry old right wingers write about it, which is really funny because they haven't read it either.
It's why you are always wrong.
Not only wrong, but you sound kind of ignorant.
You can't be serious. There is a reason why the first one who compares anything in American politics to nazis loses. It makes everything you say after that irrelevant.
Now your talking. Let's get rid of all corporate and union political donations. Every penny has to come from individual Americans and every dime accounted for. Let people donate as much as they wish to whomever they wish as long as there is a paper trail. That way voters can follow the money and know who they are really voting for.
In reality there is no such thing as a corporate or union political "donation". There are bribes and there is extortion, but it can't be called a donation.
You kids need to get used to Elizabeth Warren. She is going to be the next senator from Massachusetts for four years, and then be the Democratic nominee for president in 2016. And the teaparty has no one but themselves to blame.
You have no idea how screwed you and your bankrupt political ideology are. You are so unqualified to govern that the worst outcome for you is to get elected. Look for the House to swing back to the Democrats as the voters send the freshmen baggers back to their day jobs.
I see you know nothing of political systems OR history, idiot. Toddle off and read a book WITHOUT pictures on every page.
The ONLY difference is one of degree…and the story isn't over yet, is it?
Actually it's just the opposite. The stereotype (at least among conservatives) is that we are intellectual and arrogant. That's probable true, but it comes with IQs that are well above average. All my liberal friends are college educated, smart and successful. Many of my conservative friends are too, so it just goes to show you that you can't judge IQs by political affiliation.
I do however believe libs and cons are wired differently. I've never known a lib to suddenly become conservative or vise versa. I guess that's what makes old Willard such an odd duck.
I've got ten seconds to kill. Tell me everything you know about National Socialists and the Nazi Party.
I bet you didn't even know the Nazi Party was very popular in the US prior to our declaring war on Germany.
Wow! More delusion, uyou really need to put down the crack pipe sober up and go home. You sound like a drug saturated moron.
Don't insult me and then ask me to converse. Sell it somewhere else.
I don't see the Dems taking over the house, the communist left is also going to probably lose the senate as well and their president Barack Hussein Obumble will go down to defeat. An orange can could beat that moron in the nexst election Go back to work and do something prosperous. Stop being a wastoid and a drain on society.
Nope. Libs, once they control an area (see major cities) DESTROY them. Libs believe that punishing "X" behavior and rewarding its opposite "Y", gets you more "X" and LESS "Y"
Look up axiom in a good dictionary. AND, go see the Wizard while you are at it.
Social Security is one thing you will never get your hands on. There has to be as safety net for retired Americans that doesn't exist at the wims of Wall Street.
You insulted yourself with your own stupidity. I just acknowledged it for what it was. Now, run along, Junior, before you embarrass yourself further. I'm fully prepared to show the world how stupid you REALLY are.
…said the moron. Your momma was a flower pot and she raised a blooming idiot.
You don't get to melt down the economy without getting a little blow back. It it were up to me Glass Steagall would again be the law of the land and the derivatives markets would be regulated up. Unfortunately for those of us who would like to retire in the next 15 years, it looks like we will need another meltdown before we get the political will to protect ourselves.
Wrong again, dolt. Of course they are. Just because they haven't completed the process yet doesn't mean it isn't in the works. What a clever Dick you are, hiding your lie in plain sight!
Just because the citizenry of 1930's Germany bought that pap, doesn't mean modern day conservative Americans will.
Babble must?
Don't act like you don't get anything in return for your tax dollars. The richer we are the more we pay in, but we are also in a better position to take advantage of the American dream than those who are less fortunate.
The difference between a conservative and a lib is you achieve some success and believe it was all you and you don't own anybody anything. I on the other hand know that the only reason I am where I am today is because I live in the greatest country in the history of the world and it is up to me to pass the same opportunities I enjoyed to the next generation. I want to see everyone's children educated in the best public school and university system possible.
Next time you are lying on the floor clutching at your chest, dial 911 and see how long it takes for a Harvard graduate to show up. Everything we do now to improve our society will come back to benefit us. I believe that just as much as you believe in your invisible friend.
In a socialistic economy the government owns the means of production. If there is no common ownership at the bottom of the economy then it is not socialism. If the factories and the businesses are operated for the benefit of private owners it is not socialism. It is capitalism and it is the foundation of our economy.
Just because we educate our children socially and provide medical care for our elderly socially does not make our economy or society socialist. Even if we provided medical care free of charge to everyone we would still not be socialist. We would still be capitalists at our core.
But that doesn't fit the narrative, does it?
So someone can't disagree with you without taking drugs?
Elizabeth Warren in 2016… you heard it here first.
You talking about major cities like New York, Los Angeles, Houston, Minneapolis, Chicago? Some of the greatest cities in the world.
LOL!
MORE proof (not that anymore is needed) that libs are low IQ.
No, that'snot it. It is just that you are person who uses mind altering drugs.
Consumer protection, and the problem with price gouging laws is optimal pricing during an emergency unethical? By miChael giBeRson | Texas Tech University http://www.cato.org/pubs/regulation/regv34n1/regv...
"The time is near at hand which must determine whether Americans are to be free men or slaves."
George Washington
Wrong. Socialistic economy is when the means of production are owned privately but are controlled by government. (i.e. regulations, taxes, etc.).
Communism is when government owns the means of production.
They are basically the same, just the semantics are different.
Google "socialism" and I will bet you find that public ownership of the means of production is the primary tenant.
Every country regulates and taxes companies that do business within its borders, but that doesn't make them a socialist economy.
Liberalism does not try to "force everything to be equal". It's about equality of opportunity. What you do with that opportunity is totally up to you.
Google equality.
The CATO institute. No political agenda there.
Pot calling the kettle cast iron!
Europe is considered a socialist democracy. They have private ownership of means of production but are controlled by government.
Soviet Union was communism because the government owned everything.
Over regulation and over taxation is what makes country socialist. The government takes from the producers (through taxation and regulation) and gives to the non-producers. (i.e. redistribution of wealth).
We seem to agree that socialism requires public ownership of production, only you take "ownership" to include anyone who has the authority to tax. That's too broad for any meaningful definition.
We give works different meanings so they have meaning. Helps us communicate.
Equity; what's mine is mine, what's yours is yours.
Piece:
I don't feel like a winner. I'm one of those people who Durbin was helping. I have more than 10 credit cards and a large credit card debit. Yes I made mistake which helped cause it. But these are things I've noticed on credit card bills:
* I have been given less time to pay things off before the join my balance. An electronic credit card I had 90 days to pay off the purchase and not be charged interest. That's gone!
* I made a point of avoiding cards that charge an annual fee. I now got three annual fees. Sure I can avoid that fee by paying off the balance and closing the account, but I'm not in the position to do that.
* If a credit card company gets you to do a special interest rate fee purchase they still get to take that off the account first. If Durbin doesn't pass this law I would be better off today than I am now.
Walter Hanson
Minneapolis, MN
Yeah, that was facetious. We rarely win against the banks. The damage Durbin does is nothing however, compared the damage done by unethical actions in the banks and insistence their Executives are worth millions of dollars. You want to talk about making tons of money for doing nothing productive! Become a bank executive. Sorry the credit cards got you pinned down walter. Its what they do.
Piece:
What unethical actions are you talking about?
The government telling the banks that they can't put up tough loan standards or they will be sued for discrimination,
The government guarenting the loans which based on the lack of standards might not be paid back.
Democrats proclaiming fannie mac and freddie mae were doing a great job and there was no reason to reform them.
None of those things was caused by the banks. Those were caused by democrats and community organiizers like Obama and ACRON which are still in business.
So why don't you talk about their horrible actions instead of the banks.
Walter Hanson
Minneapolis, MN
"The government telling the banks that they can't put up tough loan standards or they will be sued for discrimination, "
In no way whatsoever is that an accurate statement. Conversely actually, the gov eased the standards the banks had to use, the result was no standard – "liar loans" was the result, mortgages offered for nothing more than the borrower's verbal statement of income. No worry for the bank, it can just group a bunch of mortgages like that, collateralize them and sell them to another bank to take the loss. Of course every other bank wanted to buy them becasue housing prices were inflating at an unrealistic rate. Banks win either way – they make a mint on housing investments b/c house prices continue upward, or they fail and gov bails them out.
The government didn't guarantee any mortgages. What they guarantee are the deposits to the banks, deposits that were used by the banks for risky investments. Again, the result of easing regulations on banks. The investments failed and banks collapsed, except the money they used for those investments was guaranteed by the government, so the banks were saved despite themselves. They had to be saved, for depositors, and so our country didn't fall into Mad Max anarchy.
You're right Democrats' proclamations about Fannie and Freddie were ridiculous. Fannie and Freddie got into the scheme eventually, like every other bank. Freddie and Fannie needed reform same as every other bank. Rather, they needed the dilution of regualtions to be returned to 1990 levels (post S&L scandal).
No, the banks are the primary reason for our near-Depression in 2008-2009. Government surely deserves a large portion of blame too, for removing regulations and not enforcing regulations for the previous 30 years, but especially in the 90's and 2000's.
Now that is the best conservative argument I've ever seen!
Just because it hasn't happened yet doesn't mean it won't.
Too funny. Hey, just because conservatives didn't support 1930's Germany doesn't mean they wouldn't today if it came back. Ha, you brought it up, now who is hiding in plain sight? Oooh, I would never bring up 1930's Germany if I supported it…
How odd is that? You bring up a topic and then demand others tell everything they know about it?
Consumers aren't being raped by central banking and fiat money. Thats the banks' job. Teatards are enablers.
You must be logged in to post a comment.