Georgia Suing Over Consumer Protection Agency - Local news, weather, sports Savannah | WSAV On Your Side

Georgia Suing Over Consumer Protection Agency

Georgia Suing Over Consumer Protection Agency

(Savannah, GA) After the 2008 financial meltdown, many Americans asked a question. How did this happen? Of course it's a complicated answer, one that most of us left up to the experts to sort out. Yet there was one overriding theme, i.e. a lack of regulations on financial institutions that allowed mortgage backed securities to be sold and re-sold which in turn contributed to the downward spiral in the economy.

It was with that in mind that the Consumer Financial Protection Bureau was formed. The CFPB was the result of the "Dodd-Frank" bill (named after the two congressman that helped push through the financial reforms). And the new agency has been the subject of contention and what some consumer groups claim is partisanship ever since.

The CFPB director Richard Cordray was never confirmed by Congress because many republican lawmakers said they would not even vote on his nomination. As a result Cordray was essentially "appointed" by the president during a period when Congress was not in session. That recess appointment by the president was recently ruled as illegal by the way.

As 2013 begins, Cordray's nomination is now before the Senate again. Which brings us to the new part of the story: The state of Georgia is entering a lawsuit which is challenging parts of the Dodd-Frank reforms. Georgia's Attorney General Sam Olens believes the law is unconstitutional and says it creates an agency with tremendous overreach. "There's nothing wrong with financial reform, but I want a law that protects Americans," Olens told us.

This act in essence creates a single individual who is Washington's Czar if you will, that's being the head of the Consumer Financial Protection Bureau."

The Georgia inclusion in legal action revolves around how banks could be liquidated. But Olens objects to much of the agency on principle. The budget isn't public for one thing," he says. I firmly believe there is a need for financial regulation reform. But there needs to be appropriate oversight, and members of Congress need to ask the tough questions.

But 43 republican U.S. Senators including Johnny Isakson and Saxby Chambliss from Georgia say they will continue to oppose the nomination of a permanent director to the CFPB. In a recent letter to President Obama, they said there's not enough congressional oversight on the budget and that the CFPB director would have too much power.

The letter says in part "we will continue to oppose the consideration of any nominee, regardless of party affiliation, to be the CFPB director until key structural changes are made to ensure accountability and transparency at the Consumer Financial Protection Bureau."

Consumer groups say hogwash. Americans for Financial Reform (AFR) says republicans are holding Cordray hostage and essentially holding the agency and consumers nationwide hostage as well. "We are deeply troubled by the recent letter from 43 Republican Senators declaring their refusal to consider - or even allow a vote to consider - any nominee to lead the Consumer bureau unless it is dramatically weakened," the AFR wrote in a letter to senators. The letter went on to say "This position amounts to an attempt by a minority in the Senate to overturn a bill passed, signed into law and supported by large majorities of the American people.\

but many consumer groups question who the politicians are protectinG.

It always sounds good to say you're doing this on behalf of taxpayers, but when you peel back the layers, they're really doing it on behalf of industry. Industry was unsuccessful in killing reforms that were created this agency so they're trying to kill it a thousands cuts at a time and make it ineffective as possible

Consumer groups say hogwash. Americans for Financial Reform (AFR) says republicans are holding Cordray hostage and essentially holding the agency and consumers nationwide hostage as well. "We are deeply troubled by the recent letter from 43 Republican Senators declaring their refusal to consider - or even allow a vote to consider - any nominee to lead the Consumer bureau unless it is dramatically weakened," the AFR wrote in a letter to senators. The letter went on to say "This position amounts to an attempt by a minority in the Senate to overturn a bill passed, signed into law and supported by large majorities of the American people."

The AFR listed up to 200 groups that are part of its membership, including Center for Responsible Lending, Kathleen Day from the Center for Responsible Lending says that reforms are being stalled because of lack of action to name a permanent director. And she says politicians seem to be protecting financial groups and financial lobbyists, not real people. "It always sounds good to say you're doing this on behalf of taxpayers, but when you peel back the layers, they're really doing it on behalf of industry. Industry was unsuccessful in killing reforms that were created this agency so they're trying to kill it a thousands cuts at a time and make it ineffective as possible," she said.

Day says industry want to make " funding of this agency a political football and use it like a choke chain."

But Attorney General Olens says there are a list of constitutional issues and that the "rule of law" is one of the key issues at stake.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Industrial Accident at International Paper Company Leaves One Man Dead

    UPDATE: Victim Identified in Fatal Accident at International Paper Company

    UPDATE: Victim Identified in Fatal Accident at International Paper Company

    Monday, September 1 2014 2:43 PM EDT2014-09-01 18:43:14 GMT
    Savannah Fire Department and Savannah-Chatham Metro Police are on the scene of an industrial accident at the International Paper Company on West Lathrop Avenue in Savannah. Spokesman Mark Keller says Savannah Fire arrived on the scene and commenced CPR, but the man was unresponsive.Details are limited now. Stay with WSAV for the latest, as News Three's Ian Margol is on the scene learning more.
    Savannah Fire Department and Savannah-Chatham Metro Police are on the scene of an industrial accident at the International Paper Company on West Lathrop Avenue in Savannah. Spokesman Mark Keller says Savannah Fire arrived on the scene and commenced CPR, but the man was unresponsive.Details are limited now. Stay with WSAV for the latest, as News Three's Ian Margol is on the scene learning more.
  • UPDATE: Man Arrested in Statesboro Bar Fight Death Denied Bond

    UPDATE: Man Arrested in Statesboro Bar Fight Death Denied Bond

    Saturday, August 30 2014 2:31 PM EDT2014-08-30 18:31:41 GMT
    A 20 year old is in custody, accused of beating 18 Year old GSU freshman Michael Gatto to death inside a club
    A 20 year old is in custody, accused of beating 18 Year old GSU freshman Michael Gatto to death inside a club
  • UPDATE: Victim Dies in Skidaway Rd. Shooting

    UPDATE: Victim Dies in Skidaway Rd. Shooting

    Saturday, August 30 2014 2:27 PM EDT2014-08-30 18:27:44 GMT
    A man is in the hospital after a shooting Friday night on Savannah's eastside.
    A man is in the hospital after a shooting Friday night on Savannah's eastside.
Powered by WorldNow

1430 East Victory Drive
Savannah, GA 31404

Telephone: 912.651.0300
Fax: 912.651.0320
Email: newsemailalert@wsav.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.