Opponents of the legislative proposal received an average of 20 percent more in contributions from financial interests over the past two-and-a-half years than the bill's supporters, a Center for Responsive Politics review has found.
The Center found that $527,500 is the average amount a committee member who voted "no" received from these financial groups' PACs and employees. The average amount a member who voted "yes" received was $438,900.
255 unique organization(s) has/have registered to lobby on this bill (H.R.3126 - Consumer Financial Protection Agency Act of 2009) [a database].
Rep. Scott Garrett (R-NJ), who chairs the House Financial Services subcommittee that oversees the Securities and Exchange Commission, says he finds the idea of giving financial regulators more funds “troubling,” since the agencies failed to prevent the 2008 financial crisis. “It’s only in government, especially in Washington, where you have agencies that failed in their core assignments in the past, and yet they are rewarded with more authority and bigger budgets,” Garrett said.
Actually, it’s only in Washington where one can, with a straight face, blame the federal government’s regulatory agencies for being ineffective after implementing conservative policies rendering their effectiveness impossible. Conservatives spent years pulling the threads out of the financial regulatory framework and appointing regulators who actively ignored their agencies’ mission. This led to the massive financial regulatory failure that caused the U.S. housing and financial crises. And now these same conservatives are using that failure to deny the agencies funding.
Proponents of financial deregulation may have a strong ally within the White House, now that President Obama has named Bill Daley his new chief of staff.
There has been much debate over whether the law will accomplish its stated intent, but there are also growing concerns about its constitutionality, primarily due to separation of powers, vagueness, and due process issues. Central to that discussion is the fact that Dodd-Frank grants administrative agencies — including the newly created Financial Stability Oversight Council and Bureau of Consumer Financial Protection — broad and unchallengeable discretionary authority. Does Dodd-Frank provide effective oversight by any branch of government — Congress, the president, or the judiciary? How can constitutional concerns about the law's grants of regulatory power be resolved? Please join us for a discussion of these important issues.
Today, we have a chance for a fresh start with real accountability for consumer financial protection. The new bureau can set the rules of the road for consumer finance and make sure American households have the information they need to make their own choices.
One agency will enforce the law across the consumer financial marketplace. No more races to the bottom in lending practices. No more sneaking through loopholes or hiding behind fine print. No one can point fingers because one agency is in charge.
Contrary to the critics’ claims, the agency is fully accountable to the American people. And importantly, it is insulated from the kind of industry or political pressures that might undermine its independence.
Official: To amend the Consumer Financial Protection Act of 2010 to move the Bureau of Consumer Financial Protection into the Department of the Treasury. as introduced.
Official: To replace the Director of the Bureau of Consumer Financial Protection with a five person Commission. as introduced.
Official: A bill to replace the Director of the Bureau of Consumer Financial Protection with a 5-person Commission, to bring the Bureau into the regular appropriations process, and for other purposes. as introduced.
Whether Warren or someone else takes the helm when the agency officially opens on July 21, the director will exert enormous power: consolidated and expanded regulatory authority over credit cards, mortgages, and a host of other consumer financial products previously wielded by seven federal agencies.
In place of a lone director, H.R.1121 would establish a five-member commission, also nominated by the President and confirmed by the Senate, for staggered five-year terms. No more than three commissioners could represent a single political party, and a commission chairman would be appointed by the President. A similar structure exists at the Federal Trade Commission, the Federal Deposit Insurance Corporation, and the Securities and Exchange Commission.
Introducing the bill on March 16, Representative Spencer Bachus (R–AL), chairman of the House Financial Services Committee, characterized the bureau as likely “the most powerful agency ever created.” Consequently, the change in management is necessary, he said, “to ensure that a non-partisan, balanced approach to consumer protection prevails.”
Recommended Action [for the BCFP]. Repeal. If not repealed, this new agency will wield far-reaching and vague regulatory powers, as well as lack accountability.
