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CBA Letter Supporting Bipartisan Financial Regulatory Reform Legislation
WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt today sent a letter to Senate Majority Leader Mitch McConnell (R-Ky.) and Senate Minority Leader Charles Schumer (D-N.Y.) expressing support for S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, as well as urging Congress to act on legislation bringing about a bipartisan commission at the Consumer Financial Protection Bureau (CFPB).
“CBA appreciates efforts to bring forth this important first step in bipartisan agreement on financial regulatory reforms. We urge Congress to look towards future bipartisan agreement to bring about additional and much needed legislative reforms to our financial regulatory system,” Hunt wrote in the letter. “CBA supports the passage of S. 2155 and welcomes the opportunity to continue to work with the Senate to enact legislation that will reform the financial services regulatory framework and reduce the regulatory burden for financial institutions of all sizes.”
Hunt also discussed the need for a bipartisan, Senate-confirmed commission at the CFPB, “Notably absent from S. 2155 is critical legislation to transition the leadership structure at the CFPB from a sole director to a bipartisan, five-member commission … We strongly encourage the Senate to swiftly act on legislation to bring about needed reforms to the CFPB … to preserve the [Bureau] as an effective regulator, with a mission to protect consumers.”
In addition to the CFPB, the letter discusses several aspects of the legislation, including:
- Systemically Significant Financial Institution Designation: CBA supports providing relief to banks under $250 billion in assets and allowing the Federal Reserve flexibility to make a more complete assessment when designating certain institutions as systematically important. This is a significant first step and we urge Congress to continue working toward policies which consider risk rather than arbitrary asset thresholds.
- MOBILE Act: CBA members believe this common-sense legislation would provide consumers with improved access to safe and regulated financial services products and promote financial inclusiveness for unbanked and underbanked consumers.
- Synthetic Fraud Protection: CBA applauds the inclusion of the bipartisan Protecting Children from Identity Theft Act into the substitute amendment to S. 2155. This provision will provide financial institutions with a necessary tool to safeguard consumers from fraudsters.
- Consumer Credit Reporting: CBA members are committed to making sure customer data is safe and secure and spend considerable resources on fraud monitoring and resolution. Consumers expect real-time credit approvals and any delays can be confusing and frustrating. While credit freezes may be the appropriate choice for some consumers, others may prefer options that enable on-demand access to credit. Given the potential negative implications of this section on the availability and flow of credit, the Senate should hold a thorough debate on this important topic prior to passing legislation changing the current credit reporting structure.
A copy of the letter is available here.
About the Consumer Bankers Association
The Consumer Bankers Association represents America’s retail banks above $10 billion in assets. We advance legislation and promote policies geared toward creating a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.6 million jobs in America, extend roughly $3 trillion in consumer loans, and provide $270 billion in small business loans. Follow us on Twitter @consumerbankers.