Banking and credit union trade groups submitted a letter to U.S. Senate leaders calling for the implementation of a 5-person bipartisan commission at the Consumer Financial Protection Bureau.
The Consumer Bankers Association, the Credit Union National Association, the Independent Community Bankers of America and the National Association of Federal Credit Unions addressed the letter to Senate Majority Leader Mitch McConnell (R-KY) and newly elected Senate Minority Leader Chuck Schumer (D-NY).
The Dec. 7 joint letter by the industry groups expressed concern the CFPB’s current structure gives the agency’s director “unpredecented authority over financial institutions, with minimal oversight.”
“A Senate confirmed, bipartisan board or commission will provide a balanced and deliberative approach to supervision, regulation and enforcement over financial institutions that is more in keeping with other financial regulators,” the letter stated.
In a joint news release posted on the CBA website, the industry groups said the creation of an independent commission would help reduce the potential for partisan abuse of power by the agency.
“The governing structure of the agency makes the potential for abuse of power and political influence not only possible, but inevitable,” CBA President and CEO Richard Hunt said in the news release.
A five-member bipartisan commission would allow for “more diverse views and expertise on issues before the agency, ensuring more balanced regulatory oversight and consumer protection,” ICBA President and CEO Cam Fine said in the release.
CUNA President and CEO Jim Nussle said in the release the current CFPB structure is “not working for credit unions and their member-owners,” .
“This commission would provide invaluable stability and clarity for credit unions, their members as well as other financial institutions and consumers,” added NAFCU President and CEO Dan Berger. “This commission would ensure that CFPB’s leadership structure would not be vulnerable to being changed every four years at the will of the president.”
To read the full letter, click here.
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