Jeb Hensarling is resorting to “alternative facts” in his quest to drag the US back to the bad old days of “innovative” mortgages and unregulated financial companies that gave us the Great Recession.Last week I heard an interview on Morning Edition that had me fuming at my radio. Steve Inskeep interviewed Representative Jeb Hensarling (R-Texas) about Hensarling’s goal to eliminate the Consumer Financial Protection Bureau (CPFB). After listening to the interview, I had a question for Mr. Hensarling: are you a liar, or do you actually believe your own bullshit?
Hensarling, who has been pursuing the destruction of the CPFB as the chairman of the House Financial Services Committee, said
Somebody has to protect consumers, not just from Wall Street but protect them from Washington as well. And the Consumer Financial Protection Bureau has hurt consumers. Free checking at banks has been cut in half. Banking fees have gone up. Working people are finding it more difficult to get mortgages.
The bottom line is the best consumer protection are competitive, innovative markets that are transparent.
Yes, it’s true that some working people are having a hard time finding mortgages, but it’s not because mortgage markets aren’t transparent, competitive, or innovative. It’s because those working people are not making enough money to afford the house they want, or have poor credit histories. Free checking isn’t available as much any more because banks are no longer allowed to make up the costs of the free checking by charging exorbitant overdraft fees. In other words, the CPFB is doing exactly what it’s chartered to do – protect consumers from predatory banks and bankers. Continue reading