It was interesting to read David Baumann’s June 23, 2017 article on the 22 trade groups that are asking Congress to convert the CFPB into a five-member, president-appointed, Senate-confirmed, bi-partisan commission.
The most interesting aspect about this effort is that often times, these are the same groups who complain that government is too big and too much money is being spent by regulatory agencies.
It is easy to understand why these groups want a bi-partisan commission. They believe that they would have a greater voice in trying to convince three out of five people to agree with their agendas as opposed to convincing one person who under the existing CFPB structure is accountable to no one.
Current CFPB Director Richard Cordray has been in a unique position. Many of the advocating groups believe he has run the agency in an autocratic way. Although listening to what the groups have to say, he rarely follows their suggestions or requests. This appears to be the reason why they believe they would have a better chance with five rather than one.
President Trump and the Republican majority in Congress, while well aware of the power of one, are not about to condone or accept what it would cost to create and maintain another multi-member bureaucracy.
Perhaps, at some point in the future, there may be agreement for a three member bi-partisan board similar to the NCUA. However, even that smaller expansion is currently on no one’s radar.
As each day goes by it becomes more likely that Director Cordray will soon voluntarily leave his position, head back to Ohio and run for the Democrat’s nomination for Governor.
By just being patient, President Trump will be able to fill the vacancy without having to have fired Mr. Cordray, thereby preventing an issue that would have surely been used in the Ohio contest to benefit Cordray.
The president and leaders in Congress understand that the best way to achieve any needed change at the CFPB is through less not more. One individual, as director, will be in a better position to conduct a review and analysis of the agency, look at it with fresh eyes and make the necessary changes to improve the agency’s performance. An individual in sync with the president’s goals of less regulation, less government and greater efficiencies who also continues to maintain the protection of consumer rights will get the job done sooner and better than a commission of five.
The only change needed now is to have the CFPB director serve at the pleasure of the president. No member of Congress should have a problem with that.
The way to solve a problem is not to throw money at it and make it bigger. It’s corrected by putting the one right person in the job.
Michael Fryzel is a Chicago-based attorney and former chairman of the NCUA board. He can be reached at meflaw@aol.com.
