Every Massive Government Bureaucracy Requires Oversight and Accountability – Including the CFPB
Washington,
May 10, 2011 -
The Financial Institutions and Consumer Credit Subcommittee, chaired by Rep. Shelley Moore Capito, approved three bills to improve the Consumer Financial Protection Bureau (CFPB) on April 4th. On Thursday of this week, the Financial Services Committee is scheduled to markup all three of these bills, which are:
The Responsible Consumer Financial Protection Regulations Act of 2011, sponsored by Committee Chairman Spencer Bachus
Consumer Financial Protection Safety and Soundness Improvement Act, sponsored by Representative Sean Duffy
The Bureau of Consumer Financial Protection Transfer Clarification Act, sponsored by Subcommittee Chairman Shelley Moore Capito
Some Democrats have attempted to paint these bills which bring greater accountability to the CFPB as “anti-consumer”. Such claims are baseless.
For example, Chairman Bachus’s bill would modify the structure of bureau leadership so instead of being run by one individual, the CFPB becomes more like virtually every independent agency in the Federal government and becomes governed by a bipartisan, multi-member commission. This is exactly what House Democrats voted for last year. In fact the language in the Bachus bill is identical to Section 4103 of the regulatory reform bill passed by the House last year. Every Democrat that voted against the Bachus bill voted for placing the CFPB under a commission a year ago.
Why all of a sudden do the Democrats think this is a terrible idea?
The other two bills are also common sense accountability measures. Congressman Duffy’s bill would clarify that the Financial Stability Oversight Council must set aside any CFPB regulation that would risk the safety and soundness of U.S. financial institutions. It would also provide that a majority of the FSOC’s voting members, rather than a super-majority, can stay such proposed rules. Subcommittee Chairman Capito’s bill would ensure a Senate-confirmed director of the CFPB is in place before the transfer of regulatory authority to the new bureau takes place. If the CFPB does not have a Senate-confirmed director by July 21, her bill allows the CFPB to continue to operate under the Treasury Secretary’s authority.
Because the Dodd-Frank Act places so much authority – with such little accountability – in the hands of a CFPB Director, the law requires the director to be nominated by the President and confirmed by the Senate.
