More news on the “regulatory burden” front. Consumer Financial Protection Bureau (CFPB) Director Richard Cordray gets the chance to make his best case for Senate approval as permanent director of the agency (for a five-year term) next Tuesday, March 12, 2013, at a hearing before the Senate Banking Committee.
Many don’t like the idea of another federal agency poking around credit union operations. After all, credit unions weren’t the reason the CFPB was created—something we were told repeatedly when the enabling legislation for the agency was working its way through Congress a few years back. But, the fact is, CFPB is with us—a living, breathing, regulating entity. Short of a change in the law (unlikely any time soon given political control of the Senate and White House), CFPB will be around no matter who is sitting at the director’s desk.
The Credit Union National Association (CUNA) would like to see structural changes. When the CFPB was first being considered by Congress, CUNA was supportive of language that would have created a board to govern the bureau, as opposed to an executive director, provided the board include someone with credit union experience. CUNA will continue to advocate for credit union representation at the Bureau and continue to make a vigorous case to the agency that—under the law—it can (and should) exempt credit unions from many of its regulations.