Is the CFPB hurting the economy?

by Ryan Smith07 Apr 2014
The economic impact of the Consumer Financial Protection Bureau and other federal agencies will be considered at a hearing of the House Financial Services Committee tomorrow.

The hearing, entitled “Who’s in Your Wallet: Examining How Washington Red Tape Impairs Economic Freedom,” will examine “the economic consequences of recent rulemaking, supervisory, and enforcement actions” of the CFPB and other federal regulatory agencies, according to a House memo. Besides the CFPB, other agencies under the committee’s microscope are:
  • The FDIC
  • The Federal Reserve Board
  • The National Credit Union Administration
  • The Office of the Comptroller of the Currency
“Among other things, the hearing will examine how federal financial regulatory agencies evaluate the costs and benefits to consumers of their regulatory, enforcement, and supervisory actions,” the memo stated. “The committee will explore whether products or services are no longer being offered to consumers because of agency actions and the steps federal regulators take to measure the impact on consumers if they no longer have access to specific products or services as a result of regulatory action.”

This is hardly the first time the CFPB has been in the Financial Services Committee’s crosshairs. Committee Chairman Jeb Hensarling (R-Texas) has blasted the agency at numerous previous hearings, criticizing what he calls a lack of transparency and accountability. Most recently, the committee heard allegations of systemic discrimination and retaliation within the CFPB.
 

Poll

Should CFPB have more supervision over credit agencies?