Elder Patriot – Donald Trump knew things were rotten at the Consumer Financial Protection Bureau but he likely had no idea the egregious extent that Elizabeth Warren’s baby had been used as the funding mechanism for radically leftist activist organizations.
Now he does. It’s no wonder Democrats freaked out when Trump appointed Mick Mulvaney to run the CFPB. Warren, who was intimately involved in starting the CFPB in the wake of the last financial meltdown, thought she had established a permanent line of succession for the agency’s leadership by bypassing the Federal Vacancies Reform Act.
In drafting the legislation that formed the CFPB, Warren had attempted to memorialize succession to head the bureau to the Obama appointee already in place, essentially negating the Federal Vacancies Reform Act that reserves the right to fill all federal vacancies to the president.
The act was written to allow the CFPB’s director to operate outside the control of Congress and of the White House. In essence the CFPB director position was created to work above the reach of any oversight. Something the agency’s first director, Richard Cordray, did in a most nefarious way.
The bankers that have been targeted by the CFPB have complained that the agency has too much power, operated according to partisan politics, and abused its regulatory authority with both massive and inconsistent penalties over the past six years.
Lenders were already regulated by half a dozen other federal agencies, but Warren envisioned the CFPB as a hidden bureaucratic funding mechanism for then-President Obama’s radically leftist street activists. A bureaucracy Warren and Obama envisaged providing billions of dollars to fund the street activists to carry her presidential message forward.
Under Cordray, The CFPB overstepped its statutory authority and extended it’s enforcement to auto sellers, credit-reporting agencies, and into the areas of debt collection, student loans, school accreditations and credit unions, among others.
The unduly harsh regulations and unreasonable penalties drove thousands of banks out of business. The CFPB also arbitrarily denied access to credit for other financial sectors.
But, it’s what Warren directed the CFPB to do with the money that made the IRS’ targeting of conservatives look like child’s play.
The likelihood that something illegal was afoot came after the response to President Trump naming Mick Mulvaney to head the agency after Cordray resigned and named an unaccomplished Democrat stooge as his replacement.
Deepak Gupta, a principle in Gupta Wessler, filed a temporary restraining order against President Trump to block the appointment of Mulvaney from becoming official. The case was without merit and Cordray’s appointed successor, Leandra English, didn’t have the money to fund it.
CFPB counsel recognized the president’s pre-eminence in making appointments and issued a statement saying they weren’t going to support English’s lawsuit.
So who did?
Gupta is not saying, but the agency’s employees have given nearly all of their donations to Democrats and the agency relies on their decisions to force the financial institutions it prosecutes to donate to third-party community organizers.
How much money has been redirected to these radical leftist groups is yet to be determined but it likely rivals the support that those social justice organizations receive from George Soros, Tom Steyer and the Democracy Alliance.
On April 24, 2016, the Wall Street Journal ran an editorial identifying the rogue agency as the “Consumer Financial Protection Racket”:
“In its short, unhappy life, the Consumer Financial Protection Bureau has compiled a record of abuse rivaling that of Washington’s most entrenched bureaucracies.”
The House Financial Services Committee learned that the agency regularly held what amounted to secret meetings with Democrat operatives, trial layers, representatives of radical leftist organizations and so-called “community advisors” that deliberately excluded business executives and industry experts.
So far we have discovered the CFPB may have funneled as much as $5 billion of the penalties they levied against legitimate business entities to Obama’s network of community organizers, the same group of activists Elizabeth Warren had been counting on to carry her message of open borders, amnesty, white privilege, and a whole host of social justice issues that would distract from her Marxist policies.
Mick Mulvaney has been on the job for a week but he has already begun dismantling, what one consultant who worked with the Civil Penalty Fund section of the CFPB characterized as Warren’s illicit slush fund.
There’s no doubt that had Hillary Clinton become president this corrupted use of the agency would’ve continued as business as usual.
Thankfully, Donald Trump is president and won’t tolerate this illegal use of government coercion to penalize legitimate businesses in order to fund organizations that are friendly to one side or the other.