The new Consumer Financial Protection Bureau has the bank lobbying community split, according to the Huffington Post.
“A Tuesday letter urging greater deliberation and care in adopting new regulations that was sent to Treasury Secretary Tim Geithner and congressional banking committee heads by the U.S. Chamber of Commerce, the nation’s preeminent business lobby, included the signatures of a dozen business groups, but failed to garner support from a majority of influential financial lobbying organizations,” the Huffington Post reports.
Aside from the Chamber, the only prominent bank lobbying group to support the letter was the Financial Services Roundtable, which represents JPMorgan, Bank of America, Wells Fargo and Citigroup. The Huffington Post reports that the remainder of the signatories included less prominent banking lobbyist groups, whose members include payday lenders, check-cashing agencies and unregulated specialty mortgage companies.
The Huffington Post reports that many of the organization behind the letter do not take federally insured deposits, making them exempt from federal banking regulations. However, they will be under the oversight of the CFPB unless the Senate does not confirm a full-time director for the bureau by July. The Huffington Post adds that among the signatories not on the letter were major bank lobbying groups, including American Bankers Association, the Mortgage Bankers Association, the Independent Community Bankers Association, the Consumer Bankers Association, the Credit Union National Association, the National Association of Federal Credit Unions and the Financial Services Forum.
“There was an awful lot of emphasis on the non-bank sector in that letter, the mortgage companies and the like,” ICBA lobbyist Steve Verdier said to HuffPost. “The wording is pretty nuanced, but our fundamental position is that banks are heavily regulated and supervised by their examiners, and the non-bank players need to be subject to stronger oversight.”
Click here to read the full letter from the U.S. Chamber of Commerce.
Republicans Seek Greater Congressional Oversight of the CFPB
$6.5 Billion, 5,000 Staff Could Be Allocated to Implement Dodd-Frank
Treasury Dept. Announces Launch of ‘Beta’ CFPB Website
Treasury Dept. Names General Counsel and Deputies for CFPB Team
Holly Petraeus to Establish Office of Servicemember Affairs for CFPB
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More