NTU urges all Representatives to vote“YES” on H.R. 1315, the “Consumer Financial Protection Safety and SoundnessImprovement Act of 2011.” Introducedby Rep. Sean Duffy (R-WI), this bill would make several improvements to theFinancial Stability Oversight Council’s (FSOC’s) review and oversight of theConsumer Financial Protection Bureau (CFPB).
The so-called “Wall Street Reform and ConsumerProtection Act,” better known as Dodd-Frank, created and entrustedunprecedented regulatory powers to CFPB, which was to be headed by a single,powerful director who would have inadequate accountability. Although Dodd-Frankcreated a review process for any CFPB rulemakings, the extreme standards foroverturning a rule rendered it essentially inconsequential.
The Consumer Financial Protection Safety and Soundness ImprovementAct aims to bring meaningful oversight to the powers of the CFPB. Among thechanges this bill would make to the FSOC’s review procedures are: (1) It wouldreduce the threshold to set aside CFPB regulations from two-thirds to a simplemajority; (2) It would amend the standard needed to overrule CFPB regulationsto focus on the “safety and soundness” of financial institutions, rather thanthe entire banking or financial system; and (3) It would eliminate the 45-daytime limit for FSOC review.
Although much is left to be done to remove the threat ofgovernment manipulation of the markets, H.R. 1315 would go a long way towardpreventing regulatory mischief in the fragile financial system Roll call votes on H.R. 1315 will be significantlyweighted in our annual Rating of Congress and a “YES” vote will beconsidered the pro-taxpayer position.
If you have any questions,please contact NTU Federal GovernmentAffairs Manager Brandon Greife at (703) 683-5700