Richard Cordray is an imperial director and his empire, the Consumer Financial Protection Bureau, is unconstitutional, according to Republicans on the House Financial Services Committee’s Oversight and Investigations Subcommittee.
At a subcommittee hearing Tuesday, Republican lawmakers slammed the agency for its lack of accountability to Congress and the president.
“Created under the Obama-era, 'Washington knows best' mindset, the CFPB is an unconstitutional behemoth that side-steps accountability to Congress and the president,” said subcommittee Chairman Ann Wagner (R-Mo.). “With an imperial director, the CFPB continually expands and overreaches its regulatory authority at the expense of American families who are desperate for economic relief. It is time we hold Director Cordray responsible and restructure the CFPB within the framework of our Constitution.”
This comes as the bureau is embroiled in a historical legal battle with mortgage company PHH, which maintains that the CFPB framework is unconstitutional mainly because of Cordray’s powerful insulation from the government. Under the Dodd-Frank Act, Cordray can only be removed from his position for cause.
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