Treasury Issues Report On Financial Regulation Reforms
At the directive of the President, on June 12th the Department of the Treasury issued a report on revising regulations to create economic opportunities for the banking and finance industry. The report includes a number of proposals on changes that could be made to the Consumer Financial Protection Bureau (CFPB), through both agency and Congressional action. The report comes from a series of directives by President Trump in April to review key Dodd-Frank Act provisions and loosen regulations for banks. The House voted last week to completely overhaul the Dodd-Frank Act.
Notabley, the Treasury report does deviate slightly from the House’s CHOICE Act. While the CHOICE Act would eliminate the CFPB’s authority to combat unfair, deceptive and abusive acts and practices (UDAAP), the Treasury counsels simpler limitations. The agency also recommended that the single, independent director structure of leadership at the CFPB, one that has spurred a challenge to the constitutionality of the Bureau, be modified by making the CFPB director fireable at will by the President or evolving into a non-partisan commission similar to other independent federal agencies. The recommendations housed in the report would require a combination of agency action and Congressional legislation.