CFPB to Partner with State Officials

The fledgling Consumer Financial Protection Bureau will partner with state attorneys general to bolster its enforcement capabilities, White House Adviser Elizabeth Warren announced during a speech yesterday.

Warren, who is currently heading up the new bureau in preparation of its July 21 launch, spoke of a new “joint statement of principles” on Monday, outlining the cooperation between the CFPB and state officials. She spoke before the National Association of Attorneys General (NAAG) at a Presidential Initiative Summit in Charlotte, North Carolina.

“Attorneys general are natural partners for the CFPB in our enforcement work, just as state banking supervisors are natural partners in our supervision work,” Warren said. “Indeed, you are indispensible partners. You are the states’ chief law enforcement officers. You are also on the front lines of consumer protection, and you are intimately familiar with the range of problems that hit American families the hardest.”

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Warren recently hired former Ohio attorney general Richard Cordray as enforcement chief of the CFPB and has stressed the importance of partnering with state officials to improve the bureau’s mission.

“The new consumer agency is not yet fully operational, but we already have taken steps to turn our partnership into a reality,” she said. “The CFPB and the NAAG Presidential Initiative Working Group have prepared a Joint Statement of Principles, and I am pleased to report that this joint statement has been adopted. Our hard work is already taking tangible form.”

The CFPB has begun to make hires for its leadership team, and has come under scrutiny of House Republicans who proposed bills that would inhibit the CFPB’s capabilities. The bureau is on schedule for its July 21 launch.

See Warren’s prepared remarks for NAAG.

Written by Elizabeth Ecker

 

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  • Ms. Warren is doing the right thing for the Bureau but a far more crucial issue is if the Bureau is right for America. Actions of the nature described give a bureaucracy its rational for existence. Yet even Ms. Warren makes it clear that this Bureau has limited independent powers.

    While the Bureau is a good idea, that is all it is. As structured it is little more government waste gone amuck, couching to add meaningless costs with few benefits. Reduction in paperwork could be accomplished by a committee of five or less. It is evident that Ms. Warren wants this bureau to become a super bureau and to be outside of Executive Branch. Who can blame her?

    Yet there is another side. This bureau was so poorly planned that even its overseer questions if the funding mechanism will work.

    As structured, funded, and empowered, this bureau is doomed to fail; however, failure has never been a governmental basis to shut down a governmental body. This clear eventual mess should be provided a merciful termination before it becomes a permanently ineffectual cornerstone of government waste.

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