President Donald Trump’s budget proposal for 2018 includes a suggestion to reduce the Consumer Financial Protection Bureau’s (CFBP) funding and restructure the agency to save $35 billion over the next decade.
An outline of the budget, called “A New Foundation For American Greatness,” says the $35 billion could be saved through “reforms that prevent bailouts and reverse burdensome regulations that hinder financial innovation and reduce access to credit for hardworking American families.”
One of the CFPB’s largest purposes is avoiding fallout in the event of a large, non-bank financial institution failing. It’s impossible to predict whether that will happen in the future, but under current law, Republican lawmakers and administration officials are concerned that taxpayers will be on the hook for bailing out those institutions.
Trump’s budget also proposes saving $6.9 billion by reducing the CFPB’s budget, which is currently funded by a Federal Reserve fund, and not subject to the Congressional budget process. Trump’s proposals and suggestions are completely dependent…