House Financial Services Committee Approves Three Bills Affecting CFPB

On May 13 the House Financial Services Committee approved three bills affecting the Consumer Financial Protection Bureau (CFPB) that is a principal component of the Dodd-Frank Act. According to Chairman Spencer Bachus, “Everyone on this Committee supports robust consumer protection.  But there must be real oversight and accountability of every massive government bureaucracy, and that includes the CFPB.”

The bills approved by the Financial Services Committee are:

H.R. 1121 would establish a five-member, bipartisan commission to lead the CFPB.  The legislation was approved by a vote of 33-24.

H.R. 1315 would clarify that the Financial Stability Oversight Council must set aside any CFPB regulation that is inconsistent with the safe and sound operations of U.S. financial institutions.  In addition, the bill would change the vote required to set aside regulations from two-thirds of the FSOC’s voting members to a simple majority. The legislation was approved by a vote of 35-22.

H.R. 1667 would ensure that 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, the Bureau may continue to operate under the Treasury Secretary’s authority. The legislation was approved by a vote of 32-26.