Dodd-Frank News Center

CFPB’s Impact on Small Businesses Focus of Subcommittee Hearing

This story appeared in Bank Digest.

The House Subcommittee on Investigations, Oversight and Regulations held a hearing (webcast) on July 28, 2011, to review the impact of regulations on small business access to capital with a focus on the Consumer Financial Protection Bureau. Witnesses at the hearing represented the CFPB, the financial services industry and small businesses.

Senate Banking Schedules Cordray Hearing

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter. 

The Senate Banking Committee will hold a nomination hearing for former Ohio Attorney General Richard Cordray, picked by President Obama to head the Consumer Financial Protection Bureau, on Aug. 4, 20ll.

“Until it has a Director, the CFPB will not be able to use its full powers to protect consumers and level the playing field for community banks and credit unions,” said Senate Banking Committee Chairman Tim Johnson, D-S.D.

NCUA Backs FSOC Report

This story appeared in Bank Digest.

"Together, on the FSOC, we have made significant progress in issuing a number of important studies, proposed and final rules, and establishing a venue for identifying and analyzing emerging risks,” stated NCUA Board Chairman Debbie Matz in support of the Financial Stability and Oversight Council's annual report with recommendations. According to Matz, during the past year, the NCUA has worked with other regulators on the FSOC to implement the initiatives mandated by the Dodd-Frank Act to restore integrity in the markets and strengthen the public's trust in the financial system.

FHFA Sues UBS to Recover Losses to Fannie Mae and Freddie Mac

This story appeared in Bank Digest.

The Federal Housing Finance Agency, as conservator for Fannie Mae and Freddie Mac, has filed a lawsuit in the federal district court for the Southern District of New York against UBS Americas, Inc., and related defendants alleging violations of federal securities laws in the sale of residential private-label mortgage-backed securities. The FHFA seeks to recover losses and damages sustained by Fannie and Freddie as a result of their investments in UBS Securities.

GAO to Probe Madoff Trustee, SEC

This story appeared in Bank Digest.

The Government Accountability Office will be conducting a comprehensive evaluation of the actions of the Securities Investor Protection Corporation, the trustee in the liquidation of Bernard L. Madoff Investment Securities LLLC, and the Securities and Exchange Commission's involvement and oversight of the liquidation. Rep. Scott Garrett, R-N.J., Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, stated he is “pleased to hear that the GAO has agreed to undertake this important review. The public deserves to understand the trustee's motivations for excluding so many innocent investors from SIPC protection and questions need to be answered regarding the SEC's role in this affair.” Garrett first called on the GAO to launch an evaluation in June 2011.

In February, Garrett introduced in the House of Representatives H.R. 757, the Equitable Treatment of Investors Act. According to Garrett, H.R. 757 is intended to properly shield innocent individual investors who have already been defrauded and financially devastated by Bernie Madoff from further “clawbacks” by the Securities Investor Protection Corporation trustee.

Warren to Be Replaced by Date as CFPB Advisor

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter.

Consumer Financial Protection Bureau Special Advisor Elizabeth Warren will return to Harvard Law School, and will be replaced from Aug. 1, 2011 by Raj Date, CFPB Associate Director of Research, Markets and Regulations, the Treasury Department announced.

CFPB Issues Records and Information Disclosure Interim Rule

This story appeared in Bank Digest.

The CFPB has issued an interim final rule establishing procedures for the public to obtain information from the agency under the Freedom of Information Act, the Privacy Act of 1974 and in legal proceedings. This interim final rule also establishes the CFPB's rules regarding the confidential treatment of information obtained from persons in connection with the exercise of its authorities under federal consumer financial law.

Fed Moving Ahead on Removing Credit Rating References

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter.

The Federal Reserve Board expects to propose amendments to remove references to credit ratings from its regulations in the near future, and is also encouraging reduced dependence on credit ratings across the global financial system, Congress heard July 27, 2011. At a hearing of a House Financial Services subcommittee, Mark Van Der Weide, Senior Associate Director at the Fed’s Division of Banking Supervision and Regulation, noted that although the international financial community is working to reduce reliance on credit ratings, “the Basel capital framework continues to incorporate credit ratings in material ways.”

FDIC Must Demonstrate Ability to Implement New Powers: Gruenberg

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter.

The Federal Deposit Insurance Corp. has “no greater priority” than to demonstrate it has the capacity and willingness to use its new authority to close a failing, systemically significant, financial firm without causing market disruption, FDIC Acting Chairman Martin Gruenberg told Congress July 26, 2011.

Gruenberg, appearing at a confirmation hearing of the Senate Banking Committee, has been nominated to replace Sheila Bair as FDIC chairman. “What we’re going to have to demonstrate with credibility to the financial markets is our capability to implement the authorities that we’ve been given,” Gruenberg said during questioning.

FSOC Issues Annual Report

This story appeared in Bank Digest.

The Financial Stability Oversight Council has released its Annual Report to fulfill the Congressional mandate to report on the activities of the Council, describe significant financial market and regulatory developments, analyze potential emerging threats and make certain recommendations.