4/12/2017 8:25:00 PM
Dodd-Frank Reform Measures On The Way
U.S. Rep. Jeb Hensarling to introduce legislation that repeals and replaces components of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
House Financial Services Committee Chairman U.S. Rep. Jeb Hensarling, R-Texas, is expected to release a new markup of his Financial CHOICE Act featuring fundamental reforms to the Consumer Financial Protection Bureau (CFPB) by the end of April.
Hensarling announced several revisions to the Financial CHOICE Act on Tuesday, including changing the name of the CFPB to the Consumer Financial Opportunity Agency (CFOA). The bill also removes the CFPB's supervisory functions, removes Unfair, Deceptive or Abusive Acts or Practice (UDAAP) authority, and makes the consumer complaint database fully private.
The Act, introduced in summer 2016, originally included a proposal to replace the CFPB with a five-member bipartisan commission that would be subject to congressional oversight and appropriations.
Hensarling nixed that plan in favor of creating the CFOA, which would be led by a director who could be removed at will, according to Politico. The CFOA would also have a deputy director who would work at the pleasure of the president, it reports.
The Financial CHOICE Act also contains several proposals related to repealing and replacing parts of the 2010 Dodd-Frank Act, which President Donald Trump has vowed to be “cutting a lot out of” this year.
On Tuesday, Trump met with a group of chief banking executives and discussed “streamlining” the Dodd-Frank Act or possible elimination of the law to replace it “with something else,” CNBC reports.
“That will be the minimum. But we’re doing a major elimination of the horrendous Dodd-Frank regulations, keeping some obviously, but getting rid of many,” Trump said in the article.
Potential changes to the Dodd-Frank Act have been a focus of Trump’s administration, including an executive order for extensive review of the law, ACA International previously reported.
He also signed an executive order to direct federal agencies to each establish a regulatory reform task force with the aim of reducing federal regulations impacting businesses in the United States, ACA reported.
The executive orders and potential changes to the law that created the CFPB come amid continued talks about its regulatory authority and Richard Cordray’s position as director.
During an April 4 hearing set to focus on the CFPB’s semiannual reports to Congress, Hensarling directly called for Cordray’s removal as head of the CFPB.
ACA International will continue to follow updates to the Financial CHOICE Act and the Dodd-Frank Act.
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