Treasury Department sides with Wall Street, against federal consumer watchdog agency on arbitration
Source: Washington Post
Treasury Department sides with Wall Street, against federal consumer watchdog agency on arbitration rule
By Renae Merle October 23 at 2:02 PM
In a highly unusual move, the Trump administration on Monday attacked a rule proposed by one of its own agencies. ... The intergovernmental fight pits regulators appointed by President Trump — Treasury Secretary Steven Mnuchin and acting comptroller of the currency Keith Noreika — against one of the few Obama administration appointees remaining — Richard Cordray, the head of the Consumer Financial Protection Bureau.
It is not unusual for such regulators to disagree, but rarely do those squabbles spill out into public view. The Trump administration has made unwinding many of the regulations put in place following the Great Recession a top priority, arguing that eliminating cumbersome rules would spark economic growth. But Cordray has repeatedly been a stumbling block in some key areas.
The regulation at the center of the fight addresses the fine print in many of the agreements that consumers sign when they apply for credit cards or bank accounts. These agreements typically require them to settle any disputes they have with the company through arbitration, in which a third party rules on the matter, rather than going to court or joining a class-action lawsuit.
The rule approved by the Consumer Financial Protection Bureau, a watchdog agency, would block mandatory arbitration clauses, allowing more people to file or join a lawsuit to press their complaints. ... The new measure is widely loathed on Wall Street, which has estimated it would cost them billions of dollars, and among Republicans in Congress, who call it a gift to plaintiffs' attorneys.
....
Renae Merle covers white collar crime and Wall Street for The Washington Post. Follow @renaemerle
Read more: https://www.washingtonpost.com/news/wonk/wp/2017/10/23/treasury-department-sides-with-wall-street-opposes-elimination-of-mandatory-arbitration-clauses/
Shocking, I know.
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Retweeted by David Fahrenthold: https://twitter.com/fahrenthold
Treasury Department sides with Wall Street, against federal consumer watchdog agency on arbitration rule
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that Mnuchin would side with Wall St. Who knew? 
