House lawmakers took aim at the Consumer Financial Protection Bureau (CFPB) on Thursday (Feb. 27), passing Republican-backed legislation that would curtail the power of the federal regulator.
The Wall Street Journal reported that the bill passed by the House on a 232-182 vote, would replace the CFPB’s single director with a five-member board. It would also subject the regulator to funding from Congress, rather than from the Fed.
The CFPB opened its doors in 2011 with a broad mandate to police the financial system for consumer abuses. Since then, Republicans have tried unsuccessfully to scale back the agency.
The debate about the bill on the House floor highlighted how the regulator remains a point of conflict in Washington. GOP lawmakers, who opposed the CFPB’s creation during the debate over the Dodd-Frank financial overhaul law, disagree with the regulator’s mortgage-lending rules and its efforts to analyze trends in the financial industry by collecting data from banks, among other issues.
“The CFPB is perhaps the single most powerful and least accountable federal agency in all of Washington,” said Rep. Jeb Hensarling, R-Texas, chairman of the House Financial Services Committee. “Consumers don’t just need to be protected from Wall Street. They need to be protected from Washington as well.”
Ten Democrats joined with Republicans to support the bill.
For the full story click here.