CBA Letter of Support - House Financial Services Committee Markup 10.11.17



October 11, 2017


The Honorable Jeb Hensarling                                           The Honorable Maxine Waters

Chairman                                                                            Ranking Member

House Financial Services Committee                                House Financial Services Committee

2129 Rayburn House Office Building                               2129 Rayburn House Office Building

Washington, D.C.  20515                                                  Washington, D.C. 20515


Dear Chairman Hensarling and Ranking Member Waters:


The Consumer Bankers Association (CBA) appreciates the Committee’s consideration of a number of bills that will bring needed regulatory relief and clarity to our member institutions and enhance the lives of the customers our members serve.  CBA is the voice of the retail banking industry whose products and services provide access to credit to millions of consumers and small businesses.  Our members operate in all 50 states, serve more than 150 million Americans and collectively hold two-thirds of the country’s total depository assets.


H.R. 3312, the “Systemic Risk Designation Improvement Act of 2017


The Dodd-Frank Act designates a financial institution as systemically important if it meets or exceeds an arbitrary $50 billion asset threshold.  An arbitrary asset threshold is a flawed approach used by the Financial Stability Oversight Council (FSOC) to assess the risk an institution poses to the American financial system.  H.R. 3312 would more appropriately allow regulators to gauge the systemic risk of an institution by measuring the complexity, scale, and activities of the institution. 


Requiring regulators to apply a more accurate evaluation of systemic risk an institution poses to the financial infrastructure will ultimately reduce unnecessary and burdensome compliance measures that increase operating costs and limit credit availability to consumers.  CBA strongly supports H.R. 3312 and encourages the Committee to pass this important legislation.


H.R. 3857, the “Protecting Advice for Small Savers Act of 2017


CBA supports the “Protecting Advice for Small Savers Act”, a bill to repeal the Department of Labor’s Fiduciary Rule.  If allowed to be fully implemented, the rule brings conflicting standards, redundant compliance regimes, investor confusion, and a reduction in the helpful exchange of information between financial professionals and investors.  Due to the restrictive drafting of the rule, investment products and offerings may be limited by financial service providers for certain types and sizes of accounts.



H.R. 3299, the “Protecting Consumers’ Access to Credit Act of 2017


The decision by the Second Circuit Court in the Madden v. Midland Funding, LLC case undermined a long-standing legal principle, the “valid-when-made” doctrine, which establishes that if a loan is valid when it is made with respect to its interest rate then it cannot become invalid or unenforceable when assigned to another party.  CBA strongly supports H.R. 3329 that solidifies the “valid-when-made” doctrine, which has been a cornerstone of U.S. banking law for over 100 years and prevent uncertainty for financial institutions.


H.R. 2706, the “Financial Institution Customer Protection Act of 2017


CBA strongly supports H.R. 2706, the “Financial Institution Customer Protection Act,” that would require federal banking regulatory agencies to establish requirements for the termination of bank accounts and prohibit federal banking regulators from formally or informally suggesting, requesting, or ordering a depository institution to terminate a customer account except in circumstances affecting the security of our country or specific illegal activity. 


H.R. 2396, the “Privacy Notification Technical Clarification Act


CBA supports H.R. 2396, the Privacy Notification Technical Correction Act, to reduce unnecessary paperwork by streamlining the reporting of bank privacy policies.  Specifically, H.R. 2396 would relieve a bank of its annual privacy policy notice requirement if it has not changed its policies and practices, makes its current policy publically available, notifies customers of the availability of the notice on periodic billing statements or electronically, and posts all notices if it maintains more than one policy.




CBA stands ready to work with Congress to ensure a sound regulatory framework for financial institutions and promote competition in the financial marketplace.  On behalf of the members of CBA, we appreciate the opportunity to submit this letter in support of a number of legislative proposals that would ease regulatory burdens and provide greater access to capital for consumers. 





Richard Hunt

President & CEO

Consumer Bankers Association