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“YES” on H.R. 1315, the “Consumer Financial Protection Safety and Soundness Improvement Act
July 21, 2011
NTU urges all Representatives to vote “YES” on H.R. 1315, the “Consumer Financial Protection Safety and Soundness Improvement Act of 2011.” Introduced by Rep. Sean Duffy (R-WI), this bill would make several improvements to the Financial Stability Oversight Council’s (FSOC’s) review and oversight of the Consumer Financial Protection Bureau (CFPB).
The so-called “Wall Street Reform and Consumer Protection Act,” better known as Dodd-Frank, created and entrusted unprecedented regulatory powers to CFPB, which was to be headed by a single, powerful director who would have inadequate accountability. Although Dodd-Frank created a review process for any CFPB rulemakings, the extreme standards for overturning a rule rendered it essentially inconsequential.
The Consumer Financial Protection Safety and Soundness Improvement Act aims to bring meaningful oversight to the powers of the CFPB. Among the changes this bill would make to the FSOC’s review procedures are: (1) It would reduce the threshold to set aside CFPB regulations from two-thirds to a simple majority; (2) It would amend the standard needed to overrule CFPB regulations to focus on the “safety and soundness” of financial institutions, rather than the entire banking or financial system; and (3) It would eliminate the 45-day time limit for FSOC review.
Although much is left to be done to remove the threat of government manipulation of the markets, H.R. 1315 would go a long way toward preventing regulatory mischief in the fragile financial system Roll call votes on H.R. 1315 will be significantly weighted in our annual Rating of Congress and a “YES” vote will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Federal Government Affairs Manager Brandon Greife at (703) 683-5700