Dodd-Frank News Center

Democrats' release lists floor-debate comments opposing Financial CHOICE Act

This story appeared in Bank Digest.

A House Financial Services Committee minority press release expresses strong opposition to the Financial CHOICE Act (H.R. 10), a Republican alternative to the Dodd-Frank Act that was passed by the House of Representatives on June 8, 2017. Noting that the bill passed without a single Democrat voting for it, the release said the Financial CHOICE Act "prioritizes Wall Street over Main Street" and "dismantles critical safeguards" in the Dodd-Frank Act.

The release includes statements made by more than 20 Democratic representatives expressing their opposition to the bill during the House floor debate.

Republican staff report claims CFPB failed to cooperate with Wells Fargo investigation

This story appeared in Bank Digest. 

Republican staff on the House Financial Services Committee have released an interim report regarding the Wells Fargo fraudulent accounts scandal, in which employees of Wells Fargo & Company "engaged in the practice of defrauding customers by opening millions of unneeded, and at times, unauthorized bank accounts," according to the report. 

The report stated that after the September 2016 public announcement of Wells Fargo's settlements with the Office of the Comptroller of the Currency, Consumer Financial Protection Bureau, and L.A. City Attorney, the committee launched an investigation into: "(1) how and why Wells Fargo allowed these fraudulent activities to occur at a disturbing scale across the Bank since at least May 2001; and (2) whether or not federal financial regulators were effective in detecting and remedying Wells Fargo's fraudulent branch sale practices."                                  

Republican staff stated that while Wells Fargo and the OCC have cooperated with the committee's investigation, the CFPB has not. As a result of the CFPB's failure to comply with the committee's subpoena compelling the production of records, the committee's investigation is at an impasse, according to the report. Majority staff recommended issuing deposition subpoenas to CFPB employees to investigate Director Richard Cordray's default of the committee's subpoena and prepare, if necessary, to initiate contempt proceedings against him unless the bureau produces all relevant records.

Congress members express opposing views on Financial CHOICE Act

This story appeared in Bank Digest.                                  

Several Congress members have made statements related to the Financial CHOICE Act (H.R. 10), a Republican alternative to the Dodd-Frank Act that the House of Representatives will vote on this week. Senate Banking Committee Ranking Member Sherrod Brown (D-Ohio) said, "This partisan, dangerous legislation would once again leave families, seniors, and servicemembers at the mercy of predatory lenders, and put taxpayers back on the hook to pay for Wall Street's greed and recklessness."                                  

In contrast, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) said the bill "imposes the toughest penalties in history for those who commit financial fraud. It re-establishes the CFPB as a civil enforcement agency so it is fully focused on enforcing the consumer financial protection laws written by Congress, especially those designed to protect our veterans, service members, their family members and dependents, and other consumers." But Committee Ranking Member Maxine Waters (D-Calif) said the bill "is a vehicle for Donald Trump's agenda to get rid of financial regulation and help out Wall Street."

Kildee speaks against Financial CHOICE Act

This story appeared in Bank Digest.                                  

House Financial Services Committee Vice Ranking Member Dan Kildee (D-Mich) delivered opening remarks at the Rules Committee on June 6, 2017, as the House of Representatives began consideration of the Financial CHOICE Act (H.R. 10), a Republican alternative to the Dodd-Frank Act. In his prepared remarks, Kildee said the Financial CHOICE Act "would eliminate the most important consumer protections and safeguards Congress put in place after the 2008 financial crisis."                                  

He said the bill "takes us back to the days of Wall Street predatory lending and profiting on the backs of consumers" and added that "Wall Street reform and other Democratic policies have provided our country the strongest consumer protections in our history."

Ryan issues list of reasons to support Financial CHOICE Act

This story appeared in Bank Digest.                                  

Speaker of the House Paul Ryan (R-Wis) has issued a release listing five reasons to support the Financial CHOICE Act, a Republican alternative to the Dodd-Frank Act that the House of Representatives will vote on during the week of June 5, 2017. According to Ryan's release, the Financial CHOICE Act: (1) reins in the Dodd-Frank Act, which "in practice hurt Main Street and consumers while providing more protections for Wall Street"; (2) delivers relief to main street by helping small community banks; (3) ends taxpayer bailouts of Wall Street firms; (4) cuts the deficit by $24 billion over the next 10 years, according to a Congressional Budget Office estimate; and (5) reins in unchecked Washington bureaucrats at the Consumer Financial Protection Bureau, which "is a rogue agency that is unchecked, unconstitutional, and unaccountable."

 

House to vote on Financial CHOICE Act

This story appeared in Bank Digest.                         

During the week of June 5, 2017, the House of Representatives is scheduled to vote on the Financial CHOICE Act (H.R. 10), a Republican alternative to the Dodd-Frank Act sponsored by House Financial Services Committee Chairman Jeb Hensarling (R-Texas). Hensarling said that with passage of the Financial CHOICE Act, "The era of 'too big to fail' will end and we will replace Dodd-Frank's growth-strangling regulations on community banks and credit unions with reforms that expand access to capital so small businesses can create jobs and consumers have more choices and options when it comes to credit."

                                    Speaker of the House Paul Ryan (R-Wis) called the legislation "a jobs bill for Main Street" that "will rein in the overreach of Dodd-Frank that has allowed the big banks to get bigger while small businesses have been unable to get the loans they need to succeed." House Majority Leader Kevin McCarthy (R-Calif) said the Financial CHOICE Act was "a good bill that will revive our community banks by removing burdens that prevent lending, decreasing compliance costs, and improving their access to credit and capital."                            

FTC reports to CFPB on 2016 enforcement activity

This story appeared in Bank Digest.                         

In 2016, the Federal Trade Commission initiated or continued litigating a number of enforcement activities related to compliance with the Truth in Lending Act and Reg. Z, the Consumer Leasing Act and Reg. M, and the Electronic Fund Transfer Act and Reg. E, as well as engaged in research and consumer education. The FTC detailed its regulatory actions in a report to the Consumer Financial Protection Bureau, which requested the information for its use in preparing its 2016 Annual Report to Congress.

Under the Dodd-Frank Act, the FTC has the authority to enforce TILA and Reg. Z, the CLA and Reg. M, and the EFTA and Reg. E. In addition, the Act gives the Commission the authority to enforce any CFPB rules applicable to entities within the FTC's jurisdiction.

Fed announces dates for release of stress test, CCAR results

This story appeared in Bank Digest.

The Federal Reserve Board will release results from the latest supervisory stress tests conducted as part of the Dodd-Frank Act on Thursday, June 22, 2017, and will release the results from the Comprehensive Capital Analysis and Review on Wednesday, June 28, 2017. Results for both exercises will be released at 4:30 p.m. EDT, the Fed reported. In addition, firms conducting company-run Dodd-Frank Act stress tests will separately release the results of those tests on or before July 7.

According to the Fed's press release, the Dodd-Frank Act stress tests assess whether firms have sufficient capital to absorb losses and continue operating during stressful economic and financial conditions over nine quarters. CCAR is an annual exercise undertaken by the Fed to assess whether large bank holding companies have forward-looking capital planning processes that account for their unique risks and are supported by sound risk-measurement and -management practices.

CFPB requests new 'debt collection disclosure' information collection

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau is requesting a new information collection entitled "Debt Collection Quantitative Disclosure Testing." According to the CFPB's notice, the bureau plans to seek approval from the Office of Management and Budget to conduct a web survey of approximately 8,000 individuals as part of the bureau's research on debt collection disclosures.

The survey will explore consumer comprehension and decision making in response to debt collection disclosure forms. Written comments must be received by Aug. 4, 2017.

Agencies seek approval of revised 'advanced approaches capital reporting' information collection

This story appeared in Bank Digest.  

The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency are proposing to extend for three years, with revision, a currently approved information collection for each agency entitled "Risk-Based Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework" (FFIEC 101). The FFIEC 101 is completed only by banking organizations subject to the advanced approaches risk-based capital rule, which generally applies to banking organizations with $250 billion or more in total consolidated assets or $10 billion or more in on-balance sheet foreign exposures.

On March 1, 2017, the agencies, under the auspices of the Federal Financial Institutions Examination Council, requested public comment on the proposal (see 2017 No. 685). The comment period ended on May 1, 2017, and the agencies did not receive any comments addressing the proposed changes, so they are now submitting requests to the Office of Management and Budget for review and approval of the proposal. The proposed reporting changes would take effect as of the Sept. 30, 2017, report date.

Comments on the current notice must be submitted by July 3, 2017.