More Obama Big Brother: Choking Our Choices

This effort to take control of financial companies is the brainchild of Elizabeth Warren, the Harvard Law professor. Currently, the professor is the head of the Congressional Oversight Committee. She is modeling the act after the Consumer Products Safety Commission because,(t)his crisis started with the cheating of American families, and [solving it] has to begin there, too.” We all know how that commission had made products better! Professor Warren is being assisted in her effort by Heather Booth and Americans for Financial Reform, a coalition of groups including ACORN, SEIU, MoveOn.org, and many others invested in Community Investment Act activities.

If enacted, the CFPA would severely harm financial providers and consumers. The agency would be controlled by five appointees, one of whom is head of the national bank regulator. There is no real check or balance on the others (Warren is likely to be the Chairman). The agency would have sole authority to make and interpret regulations under existing consumer finance and fair lending laws. The agency would have broad examination and information gather authority. The CFPA would ban mandatory arbitration clauses.