-
Why the Consumer Financial Protection Bureau is worth fighting for
President Trump and his Republican buddies are chipping away at the Consumer Financial Protection Bureau – and hoping you don’t notice as they topple the agency that holds large financial institutions accountable to consumers. Hear Flora’s story and you’ll understand why the CFPB is worth fighting for.
November 28th, 2017.
published: 28 Nov 2017
-
Welcome to the Consumer Financial Protection Bureau (CFPB) - featuring narration by Ron Howard
http://www.ConsumerFinance.gov
A quick video introduction to the Consumer Financial Protection Bureau (CFPB).
The central mission of the CFPB is to make markets for consumer financial products and services work for Americans—whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.
ACKNOWLEDGEMENTS:
Voiceover:
Ron Howard
Symbols:
Jonothan Jarvis [http://newmediators.com/]
The Noun Project [http://www.thenounproject.com/]
Sound FX from freesound [http://www.freesound.org/] users:
Gniffelbaf
CGEffex
xdrav
SpyrosCh
zerolagtime
rfhache
Transcript:
Now the story of a market that fell apart, and the new consumer agency that's charged with putting it back together.
When you shop for a c...
published: 02 Feb 2011
-
What is the CFPB?
The Consumer Financial Protection Bureau was created to educate and protect consumers from financial abuses. Here's how it will help you.
published: 17 Jan 2017
-
Biden Administration Looking To Restore Consumer Financial Protection Bureau | NBC News NOW
The government’s top consumer watchdog was sidelined by the Trump administration, but the Biden administration is working to get the agency back on its feet. NBC News’ Adam Edelman says the Biden administration wants to restore the Consumer Financial Protection Bureau to help guide the nation’s economic recovery and address systemic racial inequality.
» Subscribe to NBC News: http://nbcnews.to/SubscribeToNBC
» Watch more NBC video: http://bit.ly/MoreNBCNews
NBC News Digital is a collection of innovative and powerful news brands that deliver compelling, diverse and engaging news stories. NBC News Digital features NBCNews.com, MSNBC.com, TODAY.com, Nightly News, Meet the Press, Dateline, and the existing apps and digital extensions of these respective properties. We deliver the best in br...
published: 24 Mar 2021
-
The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress
THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet in OPEN SESSION, HYBRID FORMAT to conduct a hearing entitled, “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress.” The witness will be: The Honorable Rohit Chopra, Director, Consumer Financial Protection Bureau.
published: 14 Jun 2023
-
The CFPB takes aim at sloppy tenant screening practices - consumerfinance.gov
published: 17 Nov 2022
-
Jack Reed Defends Consumer Financial Protection Bureau As Supreme Court Considers Its Fate
On the Senate floor, Sen. Jack Reed (D-RI) defended the Consumer Financial Protection Bureau as the Supreme Court considers its fate.
Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:
https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript
Stay Connected
Forbes on Facebook: http://fb.com/forbes
Forbes Video on Twitter: http://www.twitter.com/forbes
Forbes Video on Instagr...
published: 04 Oct 2023
-
JB Bryan breaks down the Consumer Financial Protection Bureau
Virginia This Morning airs LIVE Monday through Friday from 9 am to 10 am.
published: 07 Nov 2016
-
The Supreme Court seems likely to side with the Consumer Financial Protection Bureau
The Supreme Court on Tuesday seemed likely to preserve the work of the Consumer Financial Protection Bureau against a conservative-led challenge.
READ MORE: https://wgntv.com/news/national/ap-the-supreme-court-seems-likely-to-side-with-the-consumer-financial-protection-bureau/
published: 03 Oct 2023
-
Consumer Financial Protection Bureau: Ripe for Reform (EventID=115384)
Connect with the House Financial Services Committee
Get the latest news: https://democrats-financialservices.house.gov/
Follow us on Facebook: https://www.facebook.com/HouseFinanci...
Follow us on Twitter: https://twitter.com/FSCDems
___________________________________
On Thursday, March 9, 2023, at 10:00 a.m. (ET) Subcommittee on Financial Institutions and Monetary Policy Chair Congressman Barr and Subcommittee Ranking Member Congressman Foster will host a hearing entitled, “Consumer Financial Protection Bureau: Ripe for Reform."
___________________________________
Witnesses for this one-panel hearing will be:
• Bill Himpler, CEO, American Financial Services Association
• Brian Johnson, Managing Director, Patomak Global Partners LLC
• Jessica Thompson, Attorney, Pacific Legal Foundati...
published: 09 Mar 2023
4:04
Why the Consumer Financial Protection Bureau is worth fighting for
President Trump and his Republican buddies are chipping away at the Consumer Financial Protection Bureau – and hoping you don’t notice as they topple the agency...
President Trump and his Republican buddies are chipping away at the Consumer Financial Protection Bureau – and hoping you don’t notice as they topple the agency that holds large financial institutions accountable to consumers. Hear Flora’s story and you’ll understand why the CFPB is worth fighting for.
November 28th, 2017.
https://wn.com/Why_The_Consumer_Financial_Protection_Bureau_Is_Worth_Fighting_For
President Trump and his Republican buddies are chipping away at the Consumer Financial Protection Bureau – and hoping you don’t notice as they topple the agency that holds large financial institutions accountable to consumers. Hear Flora’s story and you’ll understand why the CFPB is worth fighting for.
November 28th, 2017.
- published: 28 Nov 2017
- views: 4118
3:18
Welcome to the Consumer Financial Protection Bureau (CFPB) - featuring narration by Ron Howard
http://www.ConsumerFinance.gov
A quick video introduction to the Consumer Financial Protection Bureau (CFPB).
The central mission of the CFPB is to make m...
http://www.ConsumerFinance.gov
A quick video introduction to the Consumer Financial Protection Bureau (CFPB).
The central mission of the CFPB is to make markets for consumer financial products and services work for Americans—whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.
ACKNOWLEDGEMENTS:
Voiceover:
Ron Howard
Symbols:
Jonothan Jarvis [http://newmediators.com/]
The Noun Project [http://www.thenounproject.com/]
Sound FX from freesound [http://www.freesound.org/] users:
Gniffelbaf
CGEffex
xdrav
SpyrosCh
zerolagtime
rfhache
Transcript:
Now the story of a market that fell apart, and the new consumer agency that's charged with putting it back together.
When you shop for a consumer financial product or service—whether it's a home loan, a credit card, or a student loan—how do you know you're getting the best deal? After wading through all the advertising and page after page of fine print, side-by-side comparisons can be hard. That lack of clarity makes it all too easy to end up with a deal that doesn't work for you and your family.
This has real-life consequences—for you and for the whole economy.
For years, the financial system has been loaded with more and more dangerous loans, including millions of risky and unaffordable mortgages. Many government agencies supervised different parts of the system, making it nearly impossible for people to hold any one agency accountable. This fractured and outdated system was slow to adjust to the built up of risk in our economy, and we all know what happened then....
It was time for a change. In July 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act and President Obama signed it into law. Instead of important consumer protection powers being scattered across the federal government, they would all be under one roof. Now a single entity has the oversight authority to make sure that consumer financial markets work for all of us—not just for the big guys. It's the Consumer Financial Protection Bureau or CFPB.
Its job is to make credit products and other consumer financial services safer and easier to understand -- by making sure that prices are clear up front and risks are easy to see.
Think about it like this: When you go to the store to buy a toaster, you have several models to choose from. But you know that whatever model you buy, the thing isn't going to burn your house down. No manufacturer gets to boost its profits by putting in cheap wiring that you can't see. If someone wants to compete for your business, they need to lower the price or add new features.
The new Consumer Financial Protection Bureau will work to cut down on the fine print, which means there won't be places to hide nasty surprises. It will also work to make the prices and risks clear for mortgages, credit cards, and other kinds of financial products and services. That way, families can do some comparison shopping and choose the products that are best for them.
The CFPB will be a cop on the beat, making sure that every lender follows the same rules. When banks or other financial companies break the law, they will be held accountable.
The Consumer Financial Bureau is brand new. Right now, it's putting in place the basic tools so it can tackle all of these responsibilities. Stay in touch as the CFPB works to fix the broken consumer credit market and to help prevent future economic crises.
https://wn.com/Welcome_To_The_Consumer_Financial_Protection_Bureau_(Cfpb)_Featuring_Narration_By_Ron_Howard
http://www.ConsumerFinance.gov
A quick video introduction to the Consumer Financial Protection Bureau (CFPB).
The central mission of the CFPB is to make markets for consumer financial products and services work for Americans—whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.
ACKNOWLEDGEMENTS:
Voiceover:
Ron Howard
Symbols:
Jonothan Jarvis [http://newmediators.com/]
The Noun Project [http://www.thenounproject.com/]
Sound FX from freesound [http://www.freesound.org/] users:
Gniffelbaf
CGEffex
xdrav
SpyrosCh
zerolagtime
rfhache
Transcript:
Now the story of a market that fell apart, and the new consumer agency that's charged with putting it back together.
When you shop for a consumer financial product or service—whether it's a home loan, a credit card, or a student loan—how do you know you're getting the best deal? After wading through all the advertising and page after page of fine print, side-by-side comparisons can be hard. That lack of clarity makes it all too easy to end up with a deal that doesn't work for you and your family.
This has real-life consequences—for you and for the whole economy.
For years, the financial system has been loaded with more and more dangerous loans, including millions of risky and unaffordable mortgages. Many government agencies supervised different parts of the system, making it nearly impossible for people to hold any one agency accountable. This fractured and outdated system was slow to adjust to the built up of risk in our economy, and we all know what happened then....
It was time for a change. In July 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act and President Obama signed it into law. Instead of important consumer protection powers being scattered across the federal government, they would all be under one roof. Now a single entity has the oversight authority to make sure that consumer financial markets work for all of us—not just for the big guys. It's the Consumer Financial Protection Bureau or CFPB.
Its job is to make credit products and other consumer financial services safer and easier to understand -- by making sure that prices are clear up front and risks are easy to see.
Think about it like this: When you go to the store to buy a toaster, you have several models to choose from. But you know that whatever model you buy, the thing isn't going to burn your house down. No manufacturer gets to boost its profits by putting in cheap wiring that you can't see. If someone wants to compete for your business, they need to lower the price or add new features.
The new Consumer Financial Protection Bureau will work to cut down on the fine print, which means there won't be places to hide nasty surprises. It will also work to make the prices and risks clear for mortgages, credit cards, and other kinds of financial products and services. That way, families can do some comparison shopping and choose the products that are best for them.
The CFPB will be a cop on the beat, making sure that every lender follows the same rules. When banks or other financial companies break the law, they will be held accountable.
The Consumer Financial Bureau is brand new. Right now, it's putting in place the basic tools so it can tackle all of these responsibilities. Stay in touch as the CFPB works to fix the broken consumer credit market and to help prevent future economic crises.
- published: 02 Feb 2011
- views: 74789
1:29
What is the CFPB?
The Consumer Financial Protection Bureau was created to educate and protect consumers from financial abuses. Here's how it will help you.
The Consumer Financial Protection Bureau was created to educate and protect consumers from financial abuses. Here's how it will help you.
https://wn.com/What_Is_The_Cfpb
The Consumer Financial Protection Bureau was created to educate and protect consumers from financial abuses. Here's how it will help you.
- published: 17 Jan 2017
- views: 5923
4:17
Biden Administration Looking To Restore Consumer Financial Protection Bureau | NBC News NOW
The government’s top consumer watchdog was sidelined by the Trump administration, but the Biden administration is working to get the agency back on its feet. NB...
The government’s top consumer watchdog was sidelined by the Trump administration, but the Biden administration is working to get the agency back on its feet. NBC News’ Adam Edelman says the Biden administration wants to restore the Consumer Financial Protection Bureau to help guide the nation’s economic recovery and address systemic racial inequality.
» Subscribe to NBC News: http://nbcnews.to/SubscribeToNBC
» Watch more NBC video: http://bit.ly/MoreNBCNews
NBC News Digital is a collection of innovative and powerful news brands that deliver compelling, diverse and engaging news stories. NBC News Digital features NBCNews.com, MSNBC.com, TODAY.com, Nightly News, Meet the Press, Dateline, and the existing apps and digital extensions of these respective properties. We deliver the best in breaking news, live video coverage, original journalism and segments from your favorite NBC News Shows.
Connect with NBC News Online!
NBC News App: https://apps.nbcnews.com/mobile
Breaking News Alerts: https://link.nbcnews.com/join/5cj/breaking-news-signup?cid=sm_npd_nn_yt_bn-clip_190621
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Follow NBC News on Twitter: http://nbcnews.to/FollowNBC
Follow NBC News on Instagram: http://nbcnews.to/InstaNBC
#BidenAdministration #TrumpAdministration #NBCNews
Biden Administration Looking To Restore Consumer Financial Protection Bureau | NBC News NOW
https://wn.com/Biden_Administration_Looking_To_Restore_Consumer_Financial_Protection_Bureau_|_Nbc_News_Now
The government’s top consumer watchdog was sidelined by the Trump administration, but the Biden administration is working to get the agency back on its feet. NBC News’ Adam Edelman says the Biden administration wants to restore the Consumer Financial Protection Bureau to help guide the nation’s economic recovery and address systemic racial inequality.
» Subscribe to NBC News: http://nbcnews.to/SubscribeToNBC
» Watch more NBC video: http://bit.ly/MoreNBCNews
NBC News Digital is a collection of innovative and powerful news brands that deliver compelling, diverse and engaging news stories. NBC News Digital features NBCNews.com, MSNBC.com, TODAY.com, Nightly News, Meet the Press, Dateline, and the existing apps and digital extensions of these respective properties. We deliver the best in breaking news, live video coverage, original journalism and segments from your favorite NBC News Shows.
Connect with NBC News Online!
NBC News App: https://apps.nbcnews.com/mobile
Breaking News Alerts: https://link.nbcnews.com/join/5cj/breaking-news-signup?cid=sm_npd_nn_yt_bn-clip_190621
Visit NBCNews.Com: http://nbcnews.to/ReadNBC
Find NBC News on Facebook: http://nbcnews.to/LikeNBC
Follow NBC News on Twitter: http://nbcnews.to/FollowNBC
Follow NBC News on Instagram: http://nbcnews.to/InstaNBC
#BidenAdministration #TrumpAdministration #NBCNews
Biden Administration Looking To Restore Consumer Financial Protection Bureau | NBC News NOW
- published: 24 Mar 2021
- views: 5039
1:56:01
The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress
THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet in OPEN SESSION, HYBRID FORMAT to conduct a hearing entitled, “The Consumer Financial Protection ...
THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet in OPEN SESSION, HYBRID FORMAT to conduct a hearing entitled, “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress.” The witness will be: The Honorable Rohit Chopra, Director, Consumer Financial Protection Bureau.
https://wn.com/The_Consumer_Financial_Protection_Bureau’S_Semi_Annual_Report_To_Congress
THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet in OPEN SESSION, HYBRID FORMAT to conduct a hearing entitled, “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress.” The witness will be: The Honorable Rohit Chopra, Director, Consumer Financial Protection Bureau.
- published: 14 Jun 2023
- views: 1761
16:36
Jack Reed Defends Consumer Financial Protection Bureau As Supreme Court Considers Its Fate
On the Senate floor, Sen. Jack Reed (D-RI) defended the Consumer Financial Protection Bureau as the Supreme Court considers its fate.
Fuel your success with Fo...
On the Senate floor, Sen. Jack Reed (D-RI) defended the Consumer Financial Protection Bureau as the Supreme Court considers its fate.
Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:
https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript
Stay Connected
Forbes on Facebook: http://fb.com/forbes
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Forbes Video on Instagram: http://instagram.com/forbes
More From Forbes: http://forbes.com
https://wn.com/Jack_Reed_Defends_Consumer_Financial_Protection_Bureau_As_Supreme_Court_Considers_Its_Fate
On the Senate floor, Sen. Jack Reed (D-RI) defended the Consumer Financial Protection Bureau as the Supreme Court considers its fate.
Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:
https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript
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More From Forbes: http://forbes.com
- published: 04 Oct 2023
- views: 7130
5:31
JB Bryan breaks down the Consumer Financial Protection Bureau
Virginia This Morning airs LIVE Monday through Friday from 9 am to 10 am.
Virginia This Morning airs LIVE Monday through Friday from 9 am to 10 am.
https://wn.com/Jb_Bryan_Breaks_Down_The_Consumer_Financial_Protection_Bureau
Virginia This Morning airs LIVE Monday through Friday from 9 am to 10 am.
- published: 07 Nov 2016
- views: 10900
1:53
The Supreme Court seems likely to side with the Consumer Financial Protection Bureau
The Supreme Court on Tuesday seemed likely to preserve the work of the Consumer Financial Protection Bureau against a conservative-led challenge.
READ MORE: htt...
The Supreme Court on Tuesday seemed likely to preserve the work of the Consumer Financial Protection Bureau against a conservative-led challenge.
READ MORE: https://wgntv.com/news/national/ap-the-supreme-court-seems-likely-to-side-with-the-consumer-financial-protection-bureau/
https://wn.com/The_Supreme_Court_Seems_Likely_To_Side_With_The_Consumer_Financial_Protection_Bureau
The Supreme Court on Tuesday seemed likely to preserve the work of the Consumer Financial Protection Bureau against a conservative-led challenge.
READ MORE: https://wgntv.com/news/national/ap-the-supreme-court-seems-likely-to-side-with-the-consumer-financial-protection-bureau/
- published: 03 Oct 2023
- views: 494
2:18:10
Consumer Financial Protection Bureau: Ripe for Reform (EventID=115384)
Connect with the House Financial Services Committee
Get the latest news: https://democrats-financialservices.house.gov/
Follow us on Facebook: https://www.faceb...
Connect with the House Financial Services Committee
Get the latest news: https://democrats-financialservices.house.gov/
Follow us on Facebook: https://www.facebook.com/HouseFinanci...
Follow us on Twitter: https://twitter.com/FSCDems
___________________________________
On Thursday, March 9, 2023, at 10:00 a.m. (ET) Subcommittee on Financial Institutions and Monetary Policy Chair Congressman Barr and Subcommittee Ranking Member Congressman Foster will host a hearing entitled, “Consumer Financial Protection Bureau: Ripe for Reform."
___________________________________
Witnesses for this one-panel hearing will be:
• Bill Himpler, CEO, American Financial Services Association
• Brian Johnson, Managing Director, Patomak Global Partners LLC
• Jessica Thompson, Attorney, Pacific Legal Foundation
• Devin Watkins, Attorney, Competitive Enterprise Institute
• The Honorable Keith Ellison, Attorney General, State of Minnesota
___________________________________
Background
The hearing will examine the leadership structure, funding, budget, and operations of the CFPB and areas in which reforms are needed.
The Dodd-Frank Act established the CFPB as an independent agency. Unlike other federal financial agencies, the CFPB does not have an executive board, does not have an independent Inspector General, and does not allow for meaningful oversight of the director. The CFPB is led by a single director who is appointed by the president and confirmed by the Senate for a term of five years. The Dodd-Frank Act stated the President may only remove the director from office for cause, i.e. “inefficiency, neglect of duty, or malfeasance in office.” On June 29, 2020, the Supreme Court ruled in Seila Law LLC v. Consumer Financial Protection Bureau that the CFPB’s leadership structure is unconstitutional as a violation of the separation of powers. The CFPB operates outside of the annual Congressional appropriations process. Instead, it receives funding through direct transfers from the Federal Reserve (Fed), which is also not subject to the appropriations process. The Fed does not exercise authority over the CFPB or its budget. The CFPB director is required only to submit a letter to the Federal Reserve Board each quarter certifying the amount of funds that are “reasonably necessary” for carrying out the authorities of the Bureau. The Federal Reserve then transfers the requested amount. The CFPB’s funding mechanism differs than that of other financial markets regulators, including the Federal Trade Commission, the Commodity Futures Trading Commission, or the Securities and Exchange Commission, as well as the Federal banking agencies. This process affords very little oversight of the CFPB’s budget.
Legislative Proposals
The bills outlined below will be discussed during the hearing:
H.R. ____, the CFPB Dual Mandate and Economic Analysis Act
This bill would establish the Office of Economic Analysis in the CFPB to review all proposed and existing guidance, orders, rules, and regulations. The bill would require the CFPB to identify in each proposed rulemaking the problem to be solved by the rule or regulation and the metrics the CFPB will use to measure the success of the rule or regulation. These metrics must include a measurement of changes regarding consumer access to, and the cost of, consumer financial products and services. Additionally, the purpose of the CFPB would be revised to include strengthening private sector participation in markets, without government interference or subsidies, to increase competition and enhance consumer choice.
H.R. ____, the Taking Account of Bureaucrats' Spending (TABS) Act
This bill would eliminate provisions that fund the CFPB using transfers from the earnings of the Federal Reserve System. The transfers under current law permit the CFPB to be funded outside of the annual appropriations process. This bill brings the CFPB into the regular appropriations process allowing for greater oversight. Additionally, this bill would bring the CFPB out from under the Federal Reserve and make it into an independent agency named the Consumer Financial Empowerment Agency.
H.R. ____, the CFPB–IG Reform Act
This bill would establish a separate Office of Inspector General for the CFPB. Currently, such oversight of the CFPB is combined with the Office of Inspector General for the Board of Governors of the Federal Reserve System.
H.R. ____, the Transparency in CFPB Cost-Benefit Analysis Act
This bill would set forth information required to be included in a rulemaking made by the CFPB. Specifically, the CFPB must publish a justification of the proposed rulemaking; a quantitative and qualitative assessment of all anticipated direct and indirect costs and benefits; alternatives to the proposed rulemaking; impacts on small businesses; and any assumptions, data, or studies used in preparing this information...
Hearing page: https://democrats-financialservices.house.gov/events/eventsingle.aspx?EventID=410196
https://wn.com/Consumer_Financial_Protection_Bureau_Ripe_For_Reform_(Eventid_115384)
Connect with the House Financial Services Committee
Get the latest news: https://democrats-financialservices.house.gov/
Follow us on Facebook: https://www.facebook.com/HouseFinanci...
Follow us on Twitter: https://twitter.com/FSCDems
___________________________________
On Thursday, March 9, 2023, at 10:00 a.m. (ET) Subcommittee on Financial Institutions and Monetary Policy Chair Congressman Barr and Subcommittee Ranking Member Congressman Foster will host a hearing entitled, “Consumer Financial Protection Bureau: Ripe for Reform."
___________________________________
Witnesses for this one-panel hearing will be:
• Bill Himpler, CEO, American Financial Services Association
• Brian Johnson, Managing Director, Patomak Global Partners LLC
• Jessica Thompson, Attorney, Pacific Legal Foundation
• Devin Watkins, Attorney, Competitive Enterprise Institute
• The Honorable Keith Ellison, Attorney General, State of Minnesota
___________________________________
Background
The hearing will examine the leadership structure, funding, budget, and operations of the CFPB and areas in which reforms are needed.
The Dodd-Frank Act established the CFPB as an independent agency. Unlike other federal financial agencies, the CFPB does not have an executive board, does not have an independent Inspector General, and does not allow for meaningful oversight of the director. The CFPB is led by a single director who is appointed by the president and confirmed by the Senate for a term of five years. The Dodd-Frank Act stated the President may only remove the director from office for cause, i.e. “inefficiency, neglect of duty, or malfeasance in office.” On June 29, 2020, the Supreme Court ruled in Seila Law LLC v. Consumer Financial Protection Bureau that the CFPB’s leadership structure is unconstitutional as a violation of the separation of powers. The CFPB operates outside of the annual Congressional appropriations process. Instead, it receives funding through direct transfers from the Federal Reserve (Fed), which is also not subject to the appropriations process. The Fed does not exercise authority over the CFPB or its budget. The CFPB director is required only to submit a letter to the Federal Reserve Board each quarter certifying the amount of funds that are “reasonably necessary” for carrying out the authorities of the Bureau. The Federal Reserve then transfers the requested amount. The CFPB’s funding mechanism differs than that of other financial markets regulators, including the Federal Trade Commission, the Commodity Futures Trading Commission, or the Securities and Exchange Commission, as well as the Federal banking agencies. This process affords very little oversight of the CFPB’s budget.
Legislative Proposals
The bills outlined below will be discussed during the hearing:
H.R. ____, the CFPB Dual Mandate and Economic Analysis Act
This bill would establish the Office of Economic Analysis in the CFPB to review all proposed and existing guidance, orders, rules, and regulations. The bill would require the CFPB to identify in each proposed rulemaking the problem to be solved by the rule or regulation and the metrics the CFPB will use to measure the success of the rule or regulation. These metrics must include a measurement of changes regarding consumer access to, and the cost of, consumer financial products and services. Additionally, the purpose of the CFPB would be revised to include strengthening private sector participation in markets, without government interference or subsidies, to increase competition and enhance consumer choice.
H.R. ____, the Taking Account of Bureaucrats' Spending (TABS) Act
This bill would eliminate provisions that fund the CFPB using transfers from the earnings of the Federal Reserve System. The transfers under current law permit the CFPB to be funded outside of the annual appropriations process. This bill brings the CFPB into the regular appropriations process allowing for greater oversight. Additionally, this bill would bring the CFPB out from under the Federal Reserve and make it into an independent agency named the Consumer Financial Empowerment Agency.
H.R. ____, the CFPB–IG Reform Act
This bill would establish a separate Office of Inspector General for the CFPB. Currently, such oversight of the CFPB is combined with the Office of Inspector General for the Board of Governors of the Federal Reserve System.
H.R. ____, the Transparency in CFPB Cost-Benefit Analysis Act
This bill would set forth information required to be included in a rulemaking made by the CFPB. Specifically, the CFPB must publish a justification of the proposed rulemaking; a quantitative and qualitative assessment of all anticipated direct and indirect costs and benefits; alternatives to the proposed rulemaking; impacts on small businesses; and any assumptions, data, or studies used in preparing this information...
Hearing page: https://democrats-financialservices.house.gov/events/eventsingle.aspx?EventID=410196
- published: 09 Mar 2023
- views: 858