Holman Jenkins had an excellent editorial at the Wall Street Journal on Wednesday with a timely reminder of the several ways in which the Consumer Financial Protection Bureau, created by Dodd-Frank in 2010, is basically a rogue agency in the U.S. federal government.
The reminder is timely, of course, because of the attempt by the CFPB’s departing director, Richard Cordray, to outmaneuver the president and prevent him from gaining influence over the Bureau’s operations by installing the new chief.
Jenkins calls this, effectively, a coup attempt (his word). And he’s not wrong. The CFPB was designed by the Democrats in Congress – who controlled the body when Dodd-Frank was passed – to escape accountability to either the legislative or executive branch. The Bureau is funded through the Federal Reserve, and so does not depend on an allocation from Congress.
The Dodd-Frank language for appointment of new CFPB directors conflicts with the federal Vacancies Act