Fox, Meet Henhouse

Via Maggies Farm and a commenter on TigerHawk:

During consideration of H.R. 3126, legislation to establish a Consumer Financial Protection Agency (CFPA), Democrats on the House Financial Services Committee voted to pass an amendment offered by Rep. Maxine Waters (D-CA) that will make ACORN eligible to play a role in setting regulations for financial institutions.The Waters amendment adds to the CFPA Oversight Board 5 representatives from the fields of "consumer protection, fair lending and civil rights, representatives of depository institutions that primarily serve underserved communities, or representatives of communities that have been significantly impacted by higher-priced mortgages" to join Federal banking regulators in advising the Director on the consistency of proposed regulations, and strategies and policies that the Director should undertake to enforce its rules.

By making representatives of ACORN and other consumer activist organizations eligible to serve on the Oversight Board, the amendment creates a potentially enormous government sanctioned conflict of interest. ACORN-type organizations will have an advisory role on regulating the very financial institutions from which they receive millions of dollars annually in direct corporate contributions and benefit from other financial partnerships and arrangements. These are the same organizations that pressured banks to make subprime mortgage loans and thus bear a major responsibility for the collapse of the housing market.

In light of recent evidence linking ACORN to possible criminal activity, Democrats took an unprecedented step today to give ACORN a potential role alongside bank regulators in overseeing financial institutions. This is contrary to recent actions taken by the Senate and House to block federal funds to ACORN.

ACORN was an important actor in the housing bubble, responsible for numerous lawsuits and other political pressure to force banks to lend to borrowers who by objective standards did not have the income or credit history to sustain mortgage payments.  It would be interesting to see how many mortgages ACORN was involved with have gone belly up.  But now, as part of the "solution" to the financial crisis, we will put ACORN in charge.

  • Charlie B

    If the MSM ever gets off their liberal asses and started doing their job, I wonder how much well-washed Acorn money from either private or public sources ends up in the campaign coffers of the likes of Maxine Water.

  • Elliot

    Credulity is now the height of fashion.

    We could ask them, but I'll bet they have always wanted to run an asylum.

    E

  • http://devilish-details.blogspot.com/ Mesa Econoguy

    Various financial and industry experts have described the CFPA as the largest regulatory initiative in the history of this country.

    As currently configured, it has the ability to self-administrate, and determine it’s own jurisdiction. It literally has a life of its own.

    This is probably the most dangerous piece of regulation/legislation in a very long time, possibly ever, and quite possibly larger than the healthcare boondoggle.

    If healthcare reform somehow miraculously fails, watch out, this will more than make up for it.