RUTHFULLY YOURS

Mr. Hensarling, a Texas Republican, (District 5)is chairman of the House Financial Services Committee.

The Obama presidency placed no greater burden on America’s growth potential than the avalanche of regulations that smother the U.S. economic system. The most destructive and dangerous of the new regulatory bureaucracies created by the Democrat-dominated 111th Congress is the Consumer Financial Protection Bureau.

The CFPB stands with ObamaCare as a crowning “achievement” of Mr. Obama’s transformation of America. With unprecedented automatic funding provided directly by the Federal Reserve, the agency is unanswerable to anyone. Democrats chose to insulate it from Congress, the president, voters and the democratic process. The U.S. Circuit Court of Appeals for the District of Columbia noted as much in its recent PHH v. CFPB decision, which ruled the bureau’s governing structure unconstitutional. The court said the unelected CFPB director “enjoys more unilateral authority than any other officer in any of the three branches of government of the U.S. Government, other than the President.”

The CFPB is arguably the most powerful, least accountable agency in U.S. history. CFPB zealots have the power to determine the “fairness” of virtually every financial transaction in America. The agency defines its own powers and can launch investigations without cause, imposing virtually any fine or remedy, devoid of due process. It requires lenders essentially to read their clients’ minds, know and weigh their clients’ comprehension levels, and forecast future risk. It can compel the production of reams of data and employ methodologies that “infer” harm without finding any specific instance of harm or knowing violation.

The regulatory web spun by the CFPB can make every provider of financial services guilty until proven innocent, inviting selective enforcement and financial shakedowns. The CFPB is the embodiment of James Madison’s warning in Federalist No. 47 that “the accumulation of all powers, legislative, executive and judiciary, in the same hands . . . may justly be pronounced the very definition of tyranny.”

This tyranny has harmed the very consumers it purports to help. Since the CFPB’s advent, the number of banks offering free checking has drastically declined, while many bank fees have increased. Mortgage originations and auto loans have become more expensive for many Americans.

No corner of American finance is beyond the CFPB’s grasp, even auto dealers—which are specifically excluded from its jurisdiction by the Dodd-Frank Act. To dodge this legal constraint, the CFPB regulates auto dealers through enforcement “bulletins” on auto lenders, employing statistical analysis rather than specific acts to charge lenders with discriminatory lending. The race of borrowers is inferred based on the borrowers’ names and home addresses. Through this ruse they smear and shake down lenders.

https://www.wsj.com/articles/the-non-silence-of-elizabeth-warren-1486598042

The activist base of the Democratic Party is demanding rage and resistance to Donald Trump and all his works, and Senate Democrats are listening. Jeff Sessions was confirmed as Attorney General Wednesday on a party-line vote, though not without more pointless melodrama and the informal launch of Elizabeth Warren’s 2020 presidential campaign.

The Massachusetts progressive’s latest diatribe against her fellow Senator Sessions was interrupted after she repeatedly violated Senate Rule XIX, which prohibits members from besmirching the character and motives of their colleagues. After warnings that she ignored and a Republican motion, the Senate rebuked Ms. Warren 49-43. As a result, she lost her privileges to participate in the rest of the AG debate.

Ms. Warren is now claiming she was “silenced,” which is true if she means the Senate floor for an interval lasting fewer than 24 hours. It is not true if she’s talking about the Facebook Live video she taped outside the Senate chamber on Tuesday night, her live call-in to Rachel Maddow’s prime-time television show, her sundry media appearances on Wednesday or her fundraising emails off the incident.

“This is not what America is about—silencing speech,” Minority Leader Chuck Schumer said Wednesday, shortly after Ms. Warren announced an April publication date for her new book, “This Fight Is Our Fight.” For a martyr to censorship, she’s remarkably prolific.

Social media are overflowing with memes featuring the likes of Rosa Parks,Harriet Tubman and various suffragettes along with Majority Leader Mitch McConnell’s comment about the Senate sanction: “She was warned. She was given an explanation. Nevertheless, she persisted.” Likening one of the most powerful people in the world to an underground-railroad conductor may be a tad histrionic, but you be the judge.

HRH Warren isn’t a victim, even if she enjoys feeling she is, and Republicans aren’t trying to get her to “shut up,” as if that’s possible. She knowingly broke protocol and said Mr. Sessions was “racist” and prosecuting “a campaign of bigotry,” among other gross, false and personal insults that Democrats now feel entitled to hurl. Our guess is that Ms. Warren wanted to be punished so she could play out this political theater.

A question for Republicans is whether Mr. McConnell enhanced the Warren brand by responding to her provocations in this way. She already has a formidable platform but the story dominated Wednesday’s news. Then again, sooner or later Mr. McConnell had to send a signal that Senate rules can’t be violated with impunity.

The larger context is that Democrats have slowed Senate confirmation of President Trump’s cabinet to the slowest pace since Eisenhower, and by some measures since the 19th century. Though they lack the votes to defeat anyone, they’ve boycotted hearings, maxed out debate time, denied routine courtesies and delayed procedural votes.

New Jersey’s Cory Booker even testified against Mr. Sessions, which no Senator had felt to do against a colleague since Congress was formed in 1789—a period that includes the Civil War and two world wars.