Working People Need a Strong CFPB with a Leader Who Supports Its Existence

Heather Slavkin Corzo

Heather Slavkin Corzo Director of the Office of Investment, AFL-CIO

The Consumer Financial Protection Bureau was created after the Great Recession of 2008 wreaked havoc on the U.S. economy, causing millions of families to lose their homes to foreclosure and forcing millions of working people onto the unemployment rolls. Its mission is to protect working people from tricks and traps in consumer financial products like home mortgages and credit cards.

The CFPB has proven extremely effective. Since its creation in 2010, the bureau has returned $12 billion to consumers wronged by lenders. Twenty-nine million consumers have received relief.

The bureau owes much of its success to strong leadership. Sen. Elizabeth Warren (D-Mass.) originally had the idea to create the CFPB when she was a law professor at Harvard and led the bureau in its infancy. In 2012, she was succeeded by Richard Cordray, who had a strong record of pursuing wrongdoing against consumers as Ohio attorney general before his time at the CFPB.

Cordray, however, resigned last week, and President Donald Trump named Office of Management and Budget Director Mick Mulvaney to replace him.

There are a few problems with this. First, Mulvaney already has a job leading the Office of Management and Budget and has shown no intention of stepping down from the post. Mulvaney also has been highly critical of the CFPB, calling it a “joke…in a sick, sad way.” Finally, there are legal questions about who gets to lead the bureau when the director steps down—the deputy director or someone appointed by the president.

In addition, Mulvaney's former chief of staff, Natalee Binkholder, left Mulvaney's congressional staff to go to work as a lobbyist for Santander, a bank that has faced sanctions from the bureau and is reportedly facing a CFPB lawsuit alleging that it overcharged consumers for car loans.

We learned the hard way from the financial crisis in 2008 that working people need the CFPB. We need the bureau to fight to protect us from predatory lenders and, in order to be effective in doing that, it needs to be led by a strong, full-time director who believes in its mission. Consumer financial protection is a full-time job, not a side gig for someone who things it’s a "joke."

***

From the AFL-CIO

Posted In: Allied Approaches, From AFL-CIO

Union Matters

Freight can’t wait

From the USW

From tumbledown bridges to decrepit roads and failing water systems, crumbling infrastructure undermines America’s safety and prosperity. In coming weeks, Union Matters will delve into this neglect and the urgent need for a rebuilding campaign that creates jobs, fuels economic growth and revitalizes communities.

A freight train hauling lumber and nylon manufacturing chemicals derailed, caught fire and caused a 108-year-old bridge to collapse in Tempe, Ariz., this week, in the second accident on the same bridge within a month.

The bridge was damaged after the first incident, according to Union Pacific railroad that owns the rail bridge, and re-opened two days later. 

The official cause of the derailments is still under investigation, but it remains clear that the failure to modernize and maintain America’s railroad infrastructure is dangerous. 

In 2019, 499 trains that derailed were found to have defective or broken track, roadbed or structures, according to the Federal Railroad Administration’s database of safety analysis.

While railroad workers’ unions have called for increased safety improvements, rail companies have also used technology and automation as an excuse to downsize their work forces.

For example, rail companies have implemented a cost-saving measure known as Precision Scheduled Railroading (PSR), which has resulted in mass layoffs and shoddy safety protocols. 

Though privately-owned railroads have spent significantly to upgrade large, Class I trains, regional Class II trains and local, short-line Class III trains that carry important goods for farmers and businesses still rely on state and local funds for improvements. 

But cash-strapped states struggle to adequately inspect new technologies and fund safety improvements, and repairing or replacing the aging track and rail bridges will require significant public investment.

A true infrastructure commitment will not only strengthen the country’s railroad networks and increase U.S. global economic competitiveness. It will also create millions of family-sustaining jobs needed to inspect, repair and manufacture new parts for mass transit systems, all while helping to prevent future disasters.

More ...

There is Dignity in All Work

There is Dignity in All Work