The CFPB is a constitutional affront, the crowning achievement of this White House's mantra of never letting a crisis go to waste.
The agency has the power to regulate any practices it deems "unfair" -- primarily the practices of institutions and businesses that had nothing whatsoever to do with the financial crisis.
Indeed, it has blank-check power to write the rules it wants to enforce. Worse, it cannot be reined in by Congress, because Dodd-Frank gave it a self-funding mechanism. It can simply take up to 12 percent of the Federal Reserve's operating expenses to do whatever it wants. The power of Congress is ultimately the power of the purse. But in their finite wisdom, Democratic lawmakers gelded themselves. They also insulated the rogue agency from the courts, requiring that judges defer to the CFPB's legal theories.
So it has no accountability to Congress and even the courts won't be able to rein it in or restrict it any way.
But that's not all. Despite what Pres. Obama is saying about being blocked by Republicans, even Democrats recognize the problems and have supported the exact changes Republicans are pushing for, as Michelle Malkin explains:
As Senate Republicans have been pointing out for months, Dodd-Frank threw out judicial review, removed CFPB from the congressional appropriations process, provided five-year tenure protection for the director and transferred the agency from the Treasury Department to the opaque and unaccountable Federal Reserve.
Obama and Democratic leaders themselves recognize the recklessness of vesting so much unfettered power in a single individual. In 2009, Obama floated a bipartisan board to oversee enforcement. Democratic Sens. Dick Durbin of Illinois, Charles Schumer of New York and Sheldon Whitehouse of Rhode Island all co-sponsored legislation backing a commission. Massachusetts Democratic Rep. Barney Frank was also an original sponsor of a bill creating the very kind of five-member panel Republicans have proposed.
The House passed these and other structural reforms last year, but the Senate has failed to act, and the White House insists on demagoguing reformers. Moreover, taxpayers remain in the dark about how and how much the CFPB is spending, because Dodd-Frank allows the agency to draw funds from the Federal Reserve's operating expenses. Out of sight, out of mind.
It's about consolidating bureaucratic authority and granting unprecedented immunity to a single super-cop from congressional and public oversight.
This agency will NOT be a protector of consumers - not when its existence and structure is an affront to the Constitution.
Government is supposed to protect our God-given liberties. Any agency with this much power and control - and no checks from the judicial branch - will end up a tyrant, not a protector, as its beginnings are proving.