WASHINGTON (7/24/14)--Former Democratic Rep. Barney Frank said he supports raising the threshold for examination by the Consumer Financial Protection Bureau to financial institutions above the current $10 billion-in-assets cutoff.
Frank, a former House Financial Services Committee chairman and co-drafter of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, said this while testifying Wednesday before that panel at a hearing examining the four years since the passage of the Dodd-Frank Act.
The Credit Union National Association advocated the same position before the committee in a regulatory relief hearing last week. The higher exemption would be important to credit unions and community banks. For those with assets below the threshold, examination for compliance with consumer financial protection laws would remain with their prudential regulator, rather than with the Consumer Financial Protection Bureau. For credit unions that is the National Credit Union Administration.
The former congressman from Massachusetts did not propose any specific asset level for a higher exemption, stating that any number is "arbitrary."
The role of credit unions and other community financial institutions came up several times over the course of the hearing: