ABA, Trade Groups Support Proposed CFPB Structural Change

In a joint financial trade association letter to House and Senate Appropriations Committee leadership today, the American Bankers Association supported the inclusion of language in the fiscal year 2018 spending bill that would transition the Consumer Financial Protection Bureau to a bipartisan, five-member commission.

The groups noted that by a three-to-one margin, registered voters support such a structure for the regulatory watchdog agency, according to data from Morning Consult. “A Senate-confirmed, bipartisan commission will provide a balanced and deliberative approach to supervision, regulation, and enforcement for consumers and the financial institutions the CFPB oversees by encouraging input from all stakeholders,” the associations said. “The current single director structure leads to regulatory uncertainty and instability for consumers, industry, and the economy, leaving vital consumer financial protection subject to dramatic political shifts with each changing presidential administration.”

ABA has long supported this approach to reforming the CFPB in order to bring much-needed accountability and diversity of viewpoints. CFPB reform is a key element of the association’s Blueprint for Growth.