The Consumer Financial Protection Act (CFPA) has been gutted by Democrats. Yesterday, the House Financial Services Committee, approved an amendment to exempt 98% nation’s banks from oversight by a new agency created to protect consumers from abusive or deceptive credit cards, mortgages and other loans. So, small banks and credit unions don't commit fraud or implement deceptive lending practices. Is there a proof or evidence of a correlation between size of a financial institution and its likelihood to implement fraudulent practices. I didn't know greed and recklessness was limited to financial conglomerates.
Oh, but it gets better. Now that the Democrats have gutted the CFPA they are trying to just kill it. New Democrats Caucus lead by Rep. Melissa Bean, Wall Street's favorite Democrat, are considering an amendment that would preempt states from enforcing their own sometimes stronger consumer protection laws.
The CFPA, as originally proposed, attempted to establish a regulatory floor that allowed states to pass or enforce stricter consumer protections. The idea was to specifically address the situation that was transpiring in early 2000s when predatory lenders were running for cover and protection from some states' stricter consumer protection laws. They turned to federal regulators who were eager to help out the predatory lenders and preempt states' rights to protect their citizens.
The Bean Amendment would basically re-enforce the status quo. If this Bean Amendment passes what is the point of the CFPA? It would become a useless and toothless regulatory agency. Why bother at that point?