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FACT CHECK On Maloney Claim That Financial Regulators Operate Under A Single Director

Washington, Apr 6 -

WASHINGTON: Financial Services Committee Member Rep. Carolyn Maloney spoke out today against a proposal that places the new Consumer Financial Protection Bureau under the leadership of a bipartisan commission.  At a subcommittee hearing Wednesday morning, Rep. Maloney named the Federal Reserve, the Commodity Futures Trading Commission, and the Office of the Comptroller of the Currency as examples of regulators that do not operate under a commission but rather a single director. 

But as Daniel Indiviglio, an associate editor at The Atlantic, points out, Rep. Maloney’s assertion is not true.

From The Atlantic: 

“Rep. Carolyn Maloney (D-NY) doesn't like the new Republican bill. At one point, she railed against it, saying that other regulators provide similar power to directors. She named the Federal Reserve, Commodity Futures Trading Commission (CFTC), and Office of the Comptroller of Currency (OCC) as examples. But this isn't really true.

“First, the Fed does have a chair. But its monetary policy is conducted by its Federal Open Market Committee. Other decisions are agreed upon by its Board of Governors. In fact, its chair does not have rulemaking authority. Similarly the CFTC has a commission, so it's a little unclear why Maloney uses it as an example. Finally, the Comptroller of Currency does have the ability to make rules, but when it does so, it generally coordinates with the Federal Deposit Insurance Corporation, Federal Reserve, and OTS. Other regulators also have a commission structure. Some more examples include the Securities and Exchange Commission and Federal Trade Commission. So it actually looks like having a commission is the status quo.”

Click here to read Indiviglio’s article entitled “Should the Consumer Financial Protection Bureau Be an Autocracy?”