Reps. introduce bill to create commission to lead CFPB
Rep. Blaine Luetkemeyer (R-Mo.) and the Republican members of the House Financial Services Committee introduced a bill Thursday that would replace the Consumer Financial Protection Bureau’s (CFPB) single director with a bipartisan commission. CUNA has advocated for years on behalf of a commission leading the CFPB, and strongly supports the bill.
“The CFPB has the broadest regulatory reach of any financial regulator, and consumers, financial institutions and the American economy deserve nothing less than transparency and stability at the CFPB, despite any shifts in the political landscape,” said CUNA President/CEO Jim Nussle. “We thank Rep. Luetkemeyer for his work on this bill, and we look forward to continued engagement on this solution.”
The U.S. Supreme Court heard arguments in Seila Law v. CFPB this week, a lawsuit challenging the constitutionality of the CFPB being led by a single director removable only by cause. CUNA filed an amicus brief in the case, advocating the Supreme Court rule the CFPB structure unconstitutional, but stay the effect of the decision in order to give Congress time to cure the constitutional defect and establish a commission to lead the Bureau.
This position was echoed by the Editorial Board of the Wall Street Journal this week.
CUNA’s brief, as well as other communications to policymakers, has also shown that a bipartisan, multi-member leadership of the CFPB was the preferred structure in early Dodd-Frank proposals from President Barack Obama and then-Harvard law professor Elizabeth Warren, now a Democratic Senator from Massachusetts.