McHenry to CFPB Director Chopra: This So-Called Independent Agency Has Become an Arm of President Biden’s Political Operation
Washington,
June 13, 2024 -
Today, the House Financial Services Committee, led by Chairman Patrick McHenry (NC-10), is holding a hearing with Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra. Republicans are taking Director Chopra’s CFPB to task for its politicized agenda and unaccountability.
Watch Chairman McHenry’s opening remarks here.
Read Chairman McHenry’s opening remarks as prepared for delivery:
“Last month, the Supreme Court upheld the funding structure of the Consumer Financial Protection Bureau created by Congress in the Dodd-Frank Act.
“My Democratic colleagues quickly called it a victory. Mr. Chopra, you stated the bureau will now be ‘firing on all cylinders.’
“Unfortunately for my friends across the aisle, I’m not sure they fully understand what the Court’s ruling means. And this may not be the win they think it is.
“The opinion stated Congress has the power to determine or create novel funding mechanisms for federal agencies—reaffirming Congress’ power of the purse.
“This also solidifies that Congress has the power to change a funding stream.
“Republicans have a legislative solution to make the bureau more transparent and accountable to the American people. This is something we should all be in favor of.
“So, I encourage my Democratic colleagues to hold off on their victory lap. Instead, they should work with Republicans to put the CFPB on the appropriations cycle and enact commonsense reforms to rein in the agency.
“I can guarantee you, if the political shoe is on the other foot in the future, you’ll wish you’d worked with us now.
“We’re already seeing the harm a radicalized CFPB can inflict.
“Director Chopra, under your leadership, this so-called independent agency has become an arm of President Biden’s political operation.
“Data, facts, economics, and sound analysis take a backseat to politically favorable talking points.
“Even the Washington Post has called the numbers ‘fuzzy’ surrounding how much consumers could actually save if so-called junk fees were cut.
“You’ve taken your eye off the ball of consumer financial protection and are instead chasing the shiny political object. We’ve seen how this one ends. It’s never a good outcome for our financial system or the American people.
“While shirking your responsibility to protect consumers, you’ve also painted entire swaths of the financial services sector as bad actors.
“I want to remind you, Director Chopra, these are not all nameless, faceless institutions. They are made up of hard-working employees—many of whom are our neighbors and members of the communities we represent.
“The Biden Administration’s inflammatory rhetoric does nothing to root out actual fraudsters and bad actors. But it does sow distrust and fear among the very people who rely on the services provided by financial institutions.
“Speaking of bad actors, yesterday the committee held a hearing to better understand the toxic workplace culture at the Federal Deposit Insurance Corporation and the failed leadership of Chairman Gruenberg.
“Mr. Chopra, you are a member of the FDIC Board of Directors. You also played a role in forcing out Mr. Gruenberg’s predecessor, who by all accounts was working to address the abuse faced by many FDIC employees.
“It is alarming that you have not directly commented on Chairman Gruenberg’s mistreatment of his staff and his failure to address the misconduct at all levels of the agency.
“It’s safe to assume that if this were a private sector financial institution you would have been quick to call for the removal of its leadership.
“Instead, we see your blatant partisanship on full display once again.
“I urge you to stop putting politics ahead of the people who work in and rely on financial services.”
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