Treasury Secretary’s Proposal Would Destroy the Consumer Bureau and Undo Important Protections Put in Place After 2008 Economic Crisis
WASHINGTON, D.C. – Yesterday, Treasury Secretary Steve Mnuchin released a set of policy recommendations that would gut the Consumer Financial Protection Bureau (CFPB) and roll back many of the financial protections enacted in the wake of the 2008 economic crisis caused by Wall Street fraud and recklessness. On many issues, Mnuchin’s proposal goes even further than Rep. Jeb Hensarling’s (R-TX) Wall Street giveaway legislation, the so-called “Financial CHOICE Act,” which was quietly pushed through the House less than a week ago.
“This is the most ominous sign yet that Republicans will stop at nothing in their quest to eliminate important protections from Wall Street fraud and recklessness put in place after the 2008 economic collapse. Even more extreme than Rep. Jeb Hensarling’s Financial CHOICE Act, these recommendations from Treasury Secretary Mnuchin would give Wall Street free reign to gamble with our economy while gutting the Consumer Bureau and leaving hard-working families nearly defenseless against predatory financial institutions. Knowing the CHOICE Act is unlikely to pass in the Senate, the Trump administration is turning to executive orders and ‘regulatory reform’ to implement these dangerous, unethical, and unpopular ideas,” said Karl Frisch, executive director of Allied Progress.
He continued, “It’s no surprise Mnuchin would recommend such a devastating rollback of important consumer protections – he made billions foreclosing on the homes of tens of thousands of Americans following the economic collapse, and gutting these rules would give his billionaire buddies the ability to once again push our economy to the brink of collapse so they can profit off the backs of hard-working American families who can least afford it.”
Among Secretary Mnuchin’s recommendations are eliminating the Consumer Bureau’s supervision of predatory financial actors including payday and nonbank mortgage lenders, neutering the Volcker Rule that reins in risky financial behavior, and eliminating public reporting of consumer complaints to federal authorities.
Mnuchin’s announcement comes just days after reports surfaced that Brian Brooks would likely be nominated as Deputy Treasury Secretary. Brooks and Mnuchin worked together at OneWest Bank where they foreclosed on the homes of tens of thousands of families following the 2008 financial crisis. Fellow OneWest alum, Joseph Otting, is currently awaiting his confirmation hearing as President Trump’s nominee to head the Office of the Comptroller of the Currency.
To speak with Karl Frisch about Secretary Mnuchin’s extreme policy proposals, please contact Tucker Middleton at 202-644-8526 or firstname.lastname@example.org.
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Allied Progress uses hard-hitting research and creative campaigns to stand up to Wall Street and powerful special interests and hold their allies in Congress and the White House accountable.