by Jeff Sovern
The draft bill approved by the House Appropriations Financial Services Subcommittee on Wednesday included a provision that would change the CFPB from a director-led agency to a bipartisan commission, as well as language that would make funding for the bureau subject to the annual appropriations process. Both measures largely pit supportive Republicans against Democrats.
Richard Hunt, president and CEO of the Consumer Bankers Association, said Democrats should find such changes palatable with the possibility of presumptive GOP nominee Donald Trump winning the presidency.
CFPB Director Richard Cordray’s term expires in 2018, when the next president could install someone hostile to financial regulations, Hunt said.
Anyone who thinks this will aid consumers should ask why the FTC hasn't issued the auto dealer regulations Dodd-Frank authorized it to write. Of course, the FTC has a commission structure and its budget is subject to the appropriations process.