Graves Supports Reforms to CFPB to Make the Bureau More Accountable
Small Business Committee Chairman Sam Graves (R-MO) today released the following statement in support of the Consumer Financial Protection and Soundness Improvement Act (H.R. 3193), which will reform the Consumer Financial Protection Bureau (CFPB):
“This bill strengthens the oversight of CFPB rulemaking by streamlining the Financial Stability Oversight Council’s review of CFPB rules that may not properly safeguard financial institutions. More oversight, accountability and transparency are steps in the right direction. Federal regulations often have unintended consequences for small businesses, and when small companies are affected, that in turn impacts jobs and consumers.”
The Consumer Financial Protection and Soundness Improvement Act allows the Financial Stability Oversight Council to set aside any CFPB rule that may undermine the safety and soundness of financial institutions by majority vote. Additionally, it replaces the CFPB director with a bipartisan five-member panel, and establishes the CFPB’s independence from the Federal Reserve. The bill also strengthens consumer protections in the CFPB’s information-gathering process.Last Congress, the Committee held a hearing with CFPB Director Richard Cordray that focused on the Bureau’s rulemaking process, and its consideration of small businesses impacts when developing regulations.