On news today that the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of Currency (OCC) will impose a combined fine of $1 billion against Wells Fargo stemming from bank policies on mortgage interest rates and auto loan insurance, Competitive Enterprise Institute senior fellow John Berlau commented on the state of CFPB powers under Acting Director Mick Mulvaney and cautioned against government misuse of the money from the fine.
“The $1 billion fine levied on Wells Fargo by the Consumer Financial Protection Bureau and the Comptroller of the Currency shows that regulatory agencies still have plenty of powers to inflict penalties on even large financial institutions even as they ease regulatory barriers that penalize financial consumers and entrepreneurs,” said Berlau. “Both the CFPB and the OCC should make sure that proceeds from this fine go directly to the victims and not to left-wing advocacy groups, as they did under the previous CFPB director.”
- Where Was CFPB While Wells Fargo Plundered?
- Mulvaney Saving, Not ‘Dismantling,’ Consumer Financial Protection Bureau
- CEI has a lawsuit challenging the constitutionality of the CFPB and has been a vocal critic of previous CFPB abuse of power.