Wait Until CFPB Director is Confirmed to Issue Rules say Business Groups

The new Consumer Finanical Protection Bureau should wait until a director is confirmed before it issues any rules said the US Chamber of Commerce and other groups on Tuesday.

In a letter sent to Treasury Secretary Timothy Geithner, the Chamber and 13 other groups warned that without a director, Congress would be unable to oversee the new agency.  Therefore, the agency should postpose issuing any new rules.

“The Dodd Frank Act gave the CFPB tremendous power, with virtually no oversight, to go after bad actors,” said Jess Sharp, executive director for the Chamber’s Center for Capital Markets Competitiveness.  “If that power isn’t used carefully, there could be serious collateral damage to America’s job creators.”

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Elizabeth Warren was named the special assistant to the President in charge of setting up the new agency, but the bureau still requires a director to go through the Senate confirmation process.  The business groups say the bureau should defer even proposing new rules, as well as any kind of enforcement to carry out the new laws, until the Senate confirms a new director.

While the Chamber said it supports sound consumer protection regulation, there are several areas of concern that could threaten small and main street business.

“The decisions made over the next several months, both before and after the handoff to the new CFPB, will shape the consumer financial regulatory environment for years to come,” Sharp said. “We look forward to working with the Administration and Congress to develop a new bureau to help achieve these objectives.”

View a copy of the letter here.

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  • My friends, I ask you this, why should the CFPB stop issuing rules until they have a director? First off, the president knows who is going to be the new director and the new director knows he or she is going to be the new director.

    The CFPB is operating as if they have a full board and director because behind the scenes they do! The CFPB is already formed, you and I may not see that on paper but it is formed ladies and gentlemen.

    Every time I see something on the CFPB or the “Financial Regulatory Reform Bill”, I must speak out. We have passed in law the most damaging bill that has ever been passed. This bill along with the wolf squad (CFPB) have been given more authority and power to the Federal Government than any bill passed that I can remember.

    This bill gives the Federal Government and the people on the CFPB control over our entire financial system. The bill mandates that the President of these united states can hand pick the board and members of the CFPB. We should all shrivel up in fear.

    Sorry to get so emotional about it but this is fact and will affect our industry, the banking industry, wall street and the entire mortgage banking world in an adverse way. I did not even mention what this bill is going to do to the American people! I would be more than happy to talk to any one on this bill and how I view it. Have a good day.

    Thank you,

    John A. Smaldone

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