One Clap for House Effort to Curb New Financial Bureau’s Power

Diane Katz /

A House subcommittee on Wednesday approved legislation to modify the new Consumer Financial Protection Bureau (CFPB).

Spawned by the vast Dodd–Frank financial regulation statute, the CFPB (as originally structured) enjoys sweeping powers over all manner of consumer credit—without adequate accountability. Yesterday’s action is a welcome start to taming the CFPB, but more fundamental reforms are still needed.

The trio of bills endorsed by the House Financial Services Subcommittee on Financial Institutions and Consumer Credit would replace the position of bureau director with a five-member bipartisan commission, enhance the authority of the Financial Stability Oversight Council to veto CFPB regulation, and withhold regulatory powers of the CFPB until a director is appointed by the President and confirmed by the Senate. (more…)