David Krause of Marquette’s College of Business Administration has written Dismantling Financial Oversight: Implications of CFPB Downsizing for Regulatory Integrity and Market Stability. Here’s the abstract: This paper examines the long-term implications of the Consumer Financial Protection Bureau’s (CFPB) downsizing under the second Trump administration. Originally created in the aftermath of the 2008 financial crisis […]
At the American Prospect, in Hatchet Job on CFPB Even Worse in the Details. the entire article is worth a read, but here’s an excerpt to whet your appetite: Even the divisions with larger staff numbers were effectively hobbled by the RIF. The Office of Consumer Response, which maintains the consumer complaint database, was knocked down […]
The FTC currently has only three commissioners, all of whom are Republicans. There has been significant concern that the remaining commissioners will take a lax view as to both the agency’s rulemaking and enforcement authority. Nonetheless, today the Commission, with only 2 Commissioners participating due to a recusal, announced the filing of a complaint against […]
In an opinion issued today, the en banc Ninth Circuit held that Shopify, an e-commerce platform, could be sued in California based on allegations that it had installed tracking software on a California consumer’s device. The court concluded that personal jurisdiction could be exercised constitutionally, as Shopify’s conduct was expressly aimed “at California through its extraction, maintenance, […]
Here at the Yale Journal of Regulation Notice and Comment blog. John Lewis is Deputy Legal Director at Governing for Impact. Excerpt: Much like the Trump Administration’s attempt to “dismantle and disable the agency entirely,” the administration’s latest effort to prevent CFPB from enforcing vital consumer protections is unlawful. Affected parties—those who stand to benefit from the […]
Here is an excerpt from the Judge Jackson’s order: Given the scope and speed of the agency’s action, the apparent lack of consultation with the heads of the statutorily mandated agency components involved, and the troubling description of the RIF meetings set forth in plaintiffs’ declarations, the Court has significant grounds for concern that the […]
Last Friday, the DC Circuit issued an order saying the CFPB could conduct reductions in force only “after a particularized assessment.” Last night, the CFPB issued a memo identifying supervision and enforcement priorities. Today it announced that it was laying off many employees–1400 according to Wired’s story, The CFPB Has Been Gutted. (thanks to Craig Cowie […]
The order is here. Judge Jackson’s order for the district court is here. The DC Circuit is allowing the firing of CFPB employees whom the Bureau has determined “after a particularized assessment, to be unnecessary to the performance of defendants’ statutory duties.” It remains to be seen what a particularized assessment is (at one point […]
Here in the American Banker. Berry wrote: “The judges appeared to be leaning toward remanding the case back to the district court with some conditions that would allow the administration to fire some employees or put them on administrative leave.” According to Berry, the government’s lawyer, Eric D. McArthur, argued that “[t]he district court does […]
So Jon Hill reports in Trump’s CFPB Pick Could Be Confirmed By May, Scott Says. I still don’t know why the Senate’s confirmation vote on McKernan has been delayed. As for congressional Republicans’ other plans for the Bureau, Hill reports: [House Financial Services Chair French] Hill said that the general preference among his Republicans colleagues is […]