The National Association of Federally Insured Credit Unions (NAFCU) is among a chorus of banking industry groups urging lawmakers to change the governance structure of the Consumer Financial Protection Bureau (CFPB) to a five-person bipartisan commission.
“A Senate confirmed, bipartisan commission will provide a balanced and deliberative approach to supervision, regulation, and enforcement for consumers and the financial institutions the CFPB oversees by encouraging input from all stakeholders,” NAFCU said in a letter to the House and Senate Appropriations Committees. The letter was also signed by 21 other banking and financial industry associations.
The letter cited a recent Morning Consult poll, which showed that by a margin of three to one, registered voters noted support for a bipartisan commission governing the bureau instead of a sole director. Only 14 percent of those polled stating they prefer to keep the bureau’s current leadership structure.
“The current single director structure leads to regulatory uncertainty and instability for consumers, industry, and the economy, leaving vital consumer financial protection subject to dramatic political shifts with each changing presidential administration,” the letter said.
The commission is the traditional structure for the regulators of depository institutions.
The letter was sent to Senate Financial Services and General Government Subcommittee Chairman Shelley Moore Capito (R-WV) and Ranking Member Chris Coons (D-DE). It was also sent to House Financial Services and General Government Subcommittee Chairman Tom Graves (R-GA) and Ranking Member Mike Quigley (D-IL).