The Consumer Financial Protection Bureau was recently ruled as having an illegal structure by the US Court of Appeals for the DC Circuit.  The court wrote in its decision:

“Indeed, other than the President, the Director of the CFPB is the single most powerful official in the entire United States Government, at least when measured in terms of unilateral power.  That is not an overstatement.”

Although this doesn’t fix all the overreach the CFPB has already committed, we can at least be grateful for the sliver of hope this provides for the future.  It is scary how this government agency has been acting as its own judge and jury against American business, big and small, without any additional oversight from the other branches of government.

Drowning in regulations? Time to come up for air.

Drowning in regulations? Time to come up for air.

The problem of excessive government regulations killing off American businesses is still alive and well, as is the problem of White House officials abusing their power to control more of the “free economy.”

The Longest Law on Record

How would you like to be a doctor, a nurse, or any hospital employee today who has to comply with Obamacare?  The law has 10,535 pages published in the Federal Register.  How did it get to be so long?  The original legislation that Nancy Pelosi said we “have to pass before we read” was only 961 pages.  But it gets worse.

Bureaucracies in the Obama Administration have thus far published approximately 11,588,500 words of Obamacare regulations.  There are only 381,517 words in the Obamacare law itself.  That means unelected federal officials have now written 30 words of regulations for every one word in the law itself, and the regulations are thirty times as long as the law.

You can imagine how easy it is to mess up when trying to follow all these regulations, and how easy it has been for the CFPB to find violations on a daily basis.  This is why there needs to be some boundaries for all government agencies.

Below is an article written by W. J. Mencarow on the illegal structure of the CFPB, that further explains why the director of the CFPB is the second most powerful official in the United States Government.  If you’ve ever wondered why it is downright impossible to follow all the laws and regulations in this country, here is part of your answer.  -Greg

 

Court Rules CFPB Structure Illegal!

October 11, 2016 By W. J. Mencarow

The US Court of Appeals for the DC Circuit — the second-highest court in the land — has ruled that the organization of the Consumer Financial Protection Board (CFPB) is unlawful.  That’s something I’ve been saying in print since the Board was created under Dodd-Frank.

In a unanimous decision of the three justices of the United States Court of Appeals for the District of Columbia Circuit, the court ruled that the CFPB’s current structure allows the director to wield far too much power, more than any other agency in the government.

Would you spend the time to read all those pages?

Would you spend the time to read all those pages?

Un-“Presidented” Power

“Because the Director alone heads the agency without Presidential supervision, and in light of the CFPB’s broad authority over the U.S. economy, the Director enjoys significantly more unilateral power than any single member of any other independent agency,” the court writes.

And it gets worse for the CFPB from there.

From the court’s decision:

By “unilateral power,” we mean power that is not checked by the President or by other colleagues.  Indeed, other than the President, the Director of the CFPB is the single most powerful official in the entire United States Government, at least when measured in terms of unilateral power.  That is not an overstatement.  What about the Speaker of the House, you might ask?  The Speaker can pass legislation only if 218 Members agree.  The Senate Majority Leader?  The Leader needs 60 Senators to invoke cloture, and needs a majority of Senators (usually 51 Senators or 50 plus the Vice President) to approve a law or nomination.  The Chief Justice?  The Chief Justice must obtain four other Justices’ votes for his or her position to prevail.  The Chair of the Federal Reserve?  The Chair needs the approval of a majority of the Federal Reserve Board.  The Secretary of Defense?  The Secretary is supervised and directed by the President.  On any decision, the Secretary must do as the President says.  So too with the Secretary of State, and the Secretary of the Treasury, and the Attorney General.

In short, the court writes, the director of the CFPB is the “single most powerful official in the entire U.S. Government, other than the President,” in terms of unilateral power.

Mandatory Supervision

“It is the Director’s view of consumer protection law that prevails over all others,” the court writes. “In essence, the Director is the President of Consumer Finance. The concentration of massive, unchecked power in a single Director marks a departure from settled historical practice and makes the CFPB unique among traditional independent agencies.”

As a result of the decision, the CFPB now will operate as an executive agency.  The President of the United States now has the power to supervise and direct the Director of the CFPB, and may remove the Director at will at any time.

READ MORE: http://www.housingwire.com/articles/38252-phh-wins-landmark-victory-cfpb-ruled-unconstitutional