A memo recently obtained by the media provides insight into the fate of the Consumer Financial Protection Bureau (CFPB), outlining House Financial Services Committee Chairman Jeb Hensarling’s new, “aggressive” plans to overhaul the agency and Dodd-Frank.
The plans, unconfirmed by the Committee (at press time), are a step up from those laid out by the Financial CHOICE Act, intended to “off-ramp” Dodd-Frank and passed by the Committee in the fall, according to CNBC. One of the more visible changes would be the installment of a “political appointee” to lead the agency—a pivot from the bill’s original proposal of a five-member commission. As reported by CNBC:
The bill would turn the head of the consumer watchdog agency into a political appointee who can be dismissed at will rather than the director of an independent agency.
The new plans would also remove the CFPB’s authority to pursue legal action against financial institutions, and consumer complaint databases.
Other provisions of Dodd-Frank are referenced in the memo, as well, including the oversight of “living wills,” a requirement that banks have contingency plans in the event of another financial crisis. The Federal Deposit Insurance Corp. (FDIC) and the Federal Reserve currently manage living wills; the new plans would remove the FDIC from the post. Earlier this month, President Trump signed an executive order supporting the refurbishment of Dodd-Frank as determined by the CHOICE Act.
Stay tuned to RISMedia.com for more developments.
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