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In a letter to U.S. Senate leaders last week, banking industry groups called for the creation of a bipartisan board to govern the Consumer Financial Protection Bureau.
The industry groups said a D.C. Circuit Court ruling that a president could remove the CFPB director at will made the status of the agency uncertain without action by Congress.
"The current single-director structure leads to regulatory uncertainty for consumers, industry and the economy," the groups wrote. "In contrast, a Senate-confirmed, bipartisan board or commission will provide a balanced and deliberative approach to supervision, regulation and enforcement over financial institutions that is more in keeping with other financial regulators."
The letter was addressed to Senate Majority Leader Mitch McConnell, a Kentucky Republican, and incoming Minority Leader Chuck Schumer, a New York Democrat. It was signed by the leaders of the Consumer Bankers Association, the Credit Union National Association, the Independent Community Bankers of America and the National Association of Federal Credit Unions.
The CFPB was established under the Dodd-Frank Act in 2010 and began operations the next year. It has recently begun to play a significant oversight role in the for-profit and student loan servicing sectors. The agency has also sought to investigate how accreditors approve for-profit colleges, an effort that was blocked by a D.C. District Court judge. The CFPB is appealing that ruling.
