Wall Street Journal: CFPB is an ‘offense to constitutional governance’

by Ryan Smith27 Apr 2016
The Wall Street Journal’s editorial board is taking aim at the Consumer Financial Protection Bureau.

In a recent editorial, the Journal calls the agency “an offense to constitutional governance.” The Journal questions the perceived lack of accountability of the CFPB and the broad powers of the agency’s director, Richard Cordray.

Those powers are currently under scrutiny in the U.S. Court of Appeals. Mortgage lender PHH was slapped with a $6.4 million penalty over kickbacks – which the agency then increased by $103 million. PHH is arguing that Cordray’s decision to up the fine shows that elected officials have no control over the agency.

The Journal agrees.

“But does the bureau really have the authority to conduct such raids on American business?” the Journal asked. “Judges on the D.C. Circuit asked because the consumer bureau is truly something new in Washington: a powerful independent regulatory agency run by a single federal official who cannot be removed from office at the will of the President.”

The Journal urged the appeals court to rule in PHH’s favor.

“For the sake of liberty and the integrity of the separation of powers, they should strike down this offense to constitutional governance.”

Poll

Should CFPB have more supervision over credit agencies?