Trump eyes control of Consumer Protection
Further attempting to weaken the Obama-era Dodd-Frank legislation born to bolster protections for consumers, Donald Trump is now asking the courts to declare the Consumer Financial Protection Bureau an unconstitutional agency. According to Forbes, a ruling in the president’s favor would allow him to oust the agency’s director without cause, as is currently required. Forbes notes that this would allow Trump, who signed an executive order in February requiring a review of Dodd-Frank, to put significant political pressure on the director and subsequently undermine the agency’s independence from the Wall Street giants it was set up to regulate.
Disney fined over minimum wage
Following a Department of Labor investigation that found violations of the Fair Labor Standards Act, Walt Disney Co. has agreed to cough up $3.8 million in back wages, according to the Daily Caller over the weekend. The bulk of the fines will be dispersed to more than 16,000 hotel and time-share employees, whose paychecks included fee deductions to pay for costume or uniform costs, causing their hourly rates to ultimately fall below the federal minimum wage.
Walmart eyes hipsters, buys ModCloth
On the surface, Walmart and ModCloth couldn’t be more different. The former offers giant discounts on everything from household items to electronics at big box stores. The latter is a trendy online clothing retailer that sells hip, one-of-a-kind items to young hipsters. Despite their differences, the pair is now teaming up under the same roof. USA Today reports that Walmart, in an effort to allure younger shoppers and better compete with Amazon, has purchased ModCloth for an undisclosed price, although unnamed sources peg the price tag between $51 million and $70 million.
Student debt protections rolled back
President Trump late last week rescinded federal protections for students who would be charged big fees in the event they default on their school loans, according to the Washington Post. The revocation means the Education Department has instructed debt collectors to ignore an Obama-era memo that forbids them from tacking on fees as high as 16 percent on the principal and accrued interest of defaulted student loans held by guarantee agencies (but not the federal government), if the borrower entered the so-called Federal Family Education Loan Program within 60 days of defaulting.