Trump Official Lays Out Point-by-Point Plan to Screw Over Consumers
Up until last November, the purpose of the Consumer Financial Protection Bureau was spelled right out in the agency’s name. Born out of the global financial crisis, the bureau was created to protect consumers from abuses in the financial sector, with jurisdiction over banks, payday lenders, credit unions, debt collectors, mortgage-servicing operations, and other companies within the U.S. In order to prevent the politics of, say, a congressman whose top contributors are commercial banks, from getting in the way of the C.F.P.B. doing its job, the bureau was established as an independent agency and funded by the Federal Reserve. That freedom allowed it to do things like impose restrictions on payday lenders, who are known to charge interest in the range of 300 percent (or more), pushing borrowers into a never-ending cycle of debt; and fine Wells Fargo, which has made a name for itself as the premier bank for ripping people off. Not everyone was thrilled with the setup, however; to hear conservative congressmen tell it, the C.F.P.B was a “dictator” that stole money from consumers and subjected financial institutions to the type of treatment you’d see in a prison camp. One of the bureau’s most vocal critics was former representative Mick Mulvaney who, during his time working for South Carolina’s 5th District, called the C.F.P.B. “a sick, sad” joke and co-sponsored legislation to get rid of it. Now that he‘s running the place, however, his views have completely changed. He’s realized not only the important role the C.F.P.B. plays in protecting consumers, but why it’s necessary for the agency to be independent from the politics of people who would lie down in traffic for Wall Street.
Just messing with you! Mulvaney’s views have not changed in the slightest. In his four short months as acting director, he‘s relaxed restrictions on loan sharks; ended an investigation into a company that, coincidentally, donated thousands of dollars to his previous congressional campaigns; decided to take a closer look into whether or not Wells Fargo really needs to pay out millions over alleged mortgage abuses; pulled back from an investigation into Equifax; and told Senator Elizabeth Warren to pipe down and let him destroy the agency in peace. All of which was apparently a prelude to this:
The Trump administration wants to limit a federal regulator’s independence in policing the consumer-finance industry, the latest salvo by the White House to roll back Obama-era oversight put in place after the financial crisis.
Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, on Monday asked Congress to pursue sweeping changes giving the executive and legislative branches control over the bureau’s regulations, leadership, and budget. Major C.F.P.B. rules would need congressional approval, for instance, and the C.F.P.B.’s director would answer directly to the president, instead of being fully independent. Its funding, which currently comes from the Federal Reserve, would be handled by Congress.
In his report, ol’ Mick—who requested zero funds for the agency for the second quarter—wrote that “the bureau is far too powerful, and with precious little oversight of its activities.”
Obviously, you can see where his vision could take the C.F.P.B. under, say, a Republican-controlled Congress and an executive branch led by a guy who signed an order to roll back Dodd-Frank because his “friends” with “nice businesses” supposedly couldn’t borrow money, and who is deeply proud of his administration’s TGI Fridays-esque “2-for-1” deal wherein for each new regulation proposed, two must be scrapped. (The former point, shockingly, is utter bulls--t: since 2010, commercial and industrial bank loans have increased by 77 percent.) During his 14 months in office, Donald Trump has embarked on a deregulatory bonanza, typically claiming the rollbacks are necessary to spur economic growth—none of which, you’ll be deeply surprised to hear, have actually materialized. And last November, the president tweeted that the C.F.P.B. was a “total disaster” that had “devastated” financial institutions. Which, clearly, bodes incredibly well for the American consumer.
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Guy who just launched a trade war still having a tough time remembering the difference between a surplus and a deficit
Nothing to see here:
Rat-bastard Democrats throw a wrench in Trump’s plan to have the military pay for his wall
Last week, having realized that his southern border wall probably wouldn’t be funded by Mexico or “pay for itself,” bone spur victim and 45th president Donald Trump tweeted his desire to have the troops pay for the thing. So it’s really extremely rude that “obstructionist” Democrats are trying to claim such an arrangement is not actually legal:
“Such a controversial move could only be funded by cutting other vital priorities for our service members, mere weeks after the Department communicated its needs to the Senate Defense Appropriations Subcommittee during omnibus appropriation negotiations,” Democratic Sens. Jack Reed and Dick Durbin wrote.
“We conclude that the Department of Defense has no legal authority, with or without a reprogramming request, to use appropriated funds for the construction of a border wall.”
Over the weekend, Trump threatened to pull out of NAFTA negotiations unless Mexico gives him his wall, suggesting that a small part of him knows the “military pays” plan might not pan out (and that he’s delusional enough to believe anyone, anywhere, thinks Mexico is going to pay).
Trump’s tax plan is making dividends great again
As predicted, some of the biggest beneficiaries of the windfall corporate America received last December are shareholders:
First quarter dividend payments for the S&P 500 hit a high of $12.79 per share, one cent above the previous record set in the fourth quarter of last year.
“There were no dividend cuts in the S&P 500 for Q1 2018, an event not seen in my history (which started in 2003),” said Howard Silverblatt, senior index analyst for S&P Dow Jones Indices. He added in a statement that, “Given the record cash levels, repatriation, and expected record earnings helped by lower tax rates, 2018 could post its seventh consecutive year of record payments,” and that there’s “potential for a return to double-digit gains, last seen during 2015.”
Better luck next time, lowly workers!
Area man continues to rant and rave about Internet company
Elsewhere!
Spotify’s record-setting direct listing makes it a $30 billion company (Reuters)
Traders May Finally Be Getting Tired of Trump’s Rants on Amazon (Bloomberg)
How Amazon’s Relationship with the Post Office Really Works (Bloomberg)
Bank of America says Facebook is no longer one of its favorite stocks in wake of data scandal (CNBC)
Stunned Investors Reap 95% Gains on Defaulted Puerto Rico Bonds (Bloomberg)
Steve Cohen beats $8 billion suit alleging he tried to ‘kill’ insurer (Reuters)
Trump is meeting with the leader of a country known for money laundering and murky ties to Russia (CNBC)
Weed Is Serious Business for Canada’s Go-To Pot Banker (Bloomberg)
New York Fed taps Williams for top post, ignoring Democrats on diversity (Politico)
Ohio Woman, 54, Arrested After Making Lewd Comments to Easter Bunny at Carousel Park (TSG)
