August 22, 2014

SHOCKER: Revolving door at regulator CFPB enables former bureaucrats to cash in at taxpayers’ expense.

Peter Carroll helped shape the mortgage regulations at the Consumer Financial Protection Bureau until this spring. Now, Carroll is senior vice president of capital markets at Wells Fargo Home Mortgages, the largest private mortgage lender in the country.

Carroll’s colleague, Lisa Applegate, was the “Mortgage Implementation Lead,” at CFPB, and now she’s “strategic quality manager within Wells’ home lending capital markets group,” according to American Banker magazine.

Carroll’s replacement at CFPB, Patricia McClung, was recently at the National Association of Realtors (one of the largest lobbying groups in the country), and for years was an executive at failed mortgage giant Freddie Mac.

What’s remarkable about the revolving-door action at the CFPB this year is that it’s completely unremarkable for the agency.

The Democratic Congress and the Obama White House created the CFPB with its 2010 Dodd-Frank financial regulation bill. The top aides to Messrs. Dodd and Frank, of course, have cashed out to K Street and Wall Street.

Yet another argument for my revolving-door surtax.