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MetLife, the country’s largest insurance company, is closing its $20 billion mortgage operations and firing 4,300 employees. The mortgage division was closed after MetLife was unable to find a buyer for the business, according to Bloomberg.
Bob, I found the following portion of the article of particular interest:
Quote
The biggest nightmare in the minds of many bankers became a realty this week and many have been a deciding factor in MetLife’s decision to exit the mortgage business. The new Consumer Financial Protection Bureau (CFPB) went into full operation with the controversial recess appointment of Richard Cordray to head the Bureau.
The CFPB operates without congressional oversight or budgetary approval. Funding for the CFPB comes directly from the Federal Reserve. Many banks are worried that aggressive implementation of a burdensome new regulatory apparatus for mortgage lending will result in higher costs and reduced profits.
While consumer advocates welcome the CFPB as a powerful protector of the public interest, critics of the new bureau worry about the scope of its powers.
Sen. Bob Corker, R (TN) said that “Instead of working in a productive way with Congress, the administration has chosen to undermine any attempt to bring accountability and balance to the bureau.”
Echoing Sen. Corker, Senate Richard Shelby of Alabama, said a recess appointment will produce an “unaccountable bureaucrat who will have immense power over the economy.”
While protecting the financial interests of the public is an important goal, the idea of an entrenched bureaucracy, accountable to no one, seems contrary to democratic principles. Lord Acton, English historian and writer, summed it up best – “Power tends to corrupt, and absolute power corrupts absolutely.”
Turn on ANY brand of political machine - and it automatically goes to the "SPIN and LIE CYCLE"
