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Chapter 4: Government Overreach

suspicious activity, act as intermediaries between the
government and private companies and advise financial
institutions on how to comply with complex regulatory
rules. Promontory is arguably the most influential of
these regulators and can receive up to $1,500 an hour
for its services.

The whistleblower provision and legal protection
are two features of the Dodd-Frank Law. Employees
who believe that their company is in violation of the
law can contact the authorities with specifics. At this
point, the law protects an employee from retaliation. If,
after an investigation, the federal authorities find any
illegalities, like fraud or tax evasion, the whistleblower
gets to keep from 10 to 30 percent of any monies
collected. The law also requires courts to grant the
bureau deference regarding its interpretation of the
federal consumer financial law.
Republicans believe that the law is overly
burdensome and places unnecessary constraints on
financial institutions and limits consumer options.
Among other things, the Republicans want to change
the leadership of the Consumer Financial Protection
Bureau from a single person to a five-person
commission. The Department of Justice has taken legal
action to declare the agency unconstitutional.

The House Financial Services Committee has
voted 34 to 26 along party lines to undo significant
parts of the Dodd-Frank Law and called for the
restructuring of the Consumer Financial Protection
Bureau. The legislation relieves banks of some
regulatory requirements as long as they meet their
capital standards. The rollback also requires banks to go

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