House Subcommittee Approves Bills to Weaken CFPB

By Richard Roth, J.D., Editor, the CCH Federal Banking Law Reporter, CCH Bank Compliance Guide, Bank Digest; co-author, Dodd-Frank Wall Street Reform and Consumer Protection Act—Law, Explanation and Analysis, May 6, 2011.

The Financial Institutions and Consumer Credit Subcommittee of the House Financial Services Committee has approved three bills that would change the structure of the Consumer Financial Protection Bureau and limit its ability to act. The bills are:

Financial Services Committee Chairman Spencer Bachus, R-Ala., noted that the reform bill passed by the House last year would have created a commission, not a single director. He also argued that the FSOC should be able to block rules that would harm not only the safety and soundness of the financial system but that would harm the safety and soundness of individual institutions. On the other hand, committee Ranking Member Carolyn Maloney, D-N.Y., criticized efforts to reconsider settled issues while many people still have not recovered from the effects of the financial crisis.