WASHINGTON, DC — U.S.Congressman Sean Duffy (WI-07), a Member of the House Committee on Financial Services and the Joint Economic Committee, issued the following statement after the full House of Representatives passed H.R. 1315, a bill he authored to increase government accountability and consumer protection by reforming the Consumer Financial Protection Bureau (CFPB):

“Today, the House has taken an important step to help establish a job-friendly environment, protect consumers and turn this economy around.  With this bill’s passage, we are giving a voice to the community banks and credit unions that are on Main Street, not Wall Street.

“One year ago today, a 2,300 plus page bill known as the ‘Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010’ was signed into law with promises of ‘robust growth in our economy’ and ‘greater economic security’ for our working families and small businesses.  Well, one year later, with new business creation at a 17-year low and paralysis in the private sector, it's painfully clear that this bill has woefully under-delivered.

“The central part of this bill was a Consumer Financial Protection Bureau (CFPB) that will cost taxpayers more than $329 million this next year alone.  But even more costly are the hours and dollars our local banks and credit unions will be forced to spend just to keep up with the mountains of rules and regulations.

“I am a strong advocate for consumer protection – that’s why my bill does not do away with the CFPB. It simply recognizes the reality that we cannot separate consumer protection from the safety and soundness of the financial system.  If our financial system fails, our economy fails and that ultimately hurts consumers. Working families and small businesses rely on community banks and credit unions to keep our local economy strong. We must stop punishing the small community banks of central and northern Wisconsin who bear no responsibility for the financial crisis of a few years ago.

“While it is unfortunate that it appears partisan politics may hinder this commonsense bill’s progress in the Senate, I remain hopeful that both the Senate and ultimately the President will join the House in protecting consumers, restoring certainty to our local economies and creating jobs.”

BACKGROUND:

H.R. 1315 would amend Section 1023 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111–203) which addresses the Financial Stability Oversight Council’s (FSOC) review and oversight of Consumer Financial Protection Bureau (CFPB) rules and regulations that may undermine the safety and soundness of U.S. financial institutions.

The bill would make four changes to the FSOC’s review procedures: (1) it would lower the threshold required to set aside CFPB’s proposed regulations from a two-thirds vote of the FSOC’s voting membership to a simple majority, excluding the Director of the CFPB; (2) it would clarify that the FSOC must set aside any CFPB regulation that is inconsistent with the safe and sound operations of U.S. financial institutions; (3) it would eliminate the 45-day time limit for the FSOC to review and vote on CFPB regulations; and (4) it would require that all FSOC meetings be open to the public whenever it decides to stay or set aside a CFPB regulation.

Additionally, the bill would establish a bi-partisan, five-member Commission (consisting of a Chairman and four additional members) to carry out all of the duties that would otherwise fall to the Director of the CFPB.  Commission members would be appointed by the President, confirmed by the Senate, and would serve five-year terms.

The bill would also amend Section 1062 of the Dodd-Frank Act to delay any further transfer of powers to the CFPB until the later of the following: (1) July 21, 2011; or (2) the date on which the Chair of the Commission of the Bureau is confirmed by the Senate.

Financial institutions – both small and large – in Wisconsin support H.R. 1315. Attached are a select group of support letters for H.R. 1315:

Central City Credit Union (Marshfield)
Community Bankers of Wisconsin
Wisconsin Bankers Association
Independent Community Bankers Association
Consumer Bankers Association
Wisconsin Credit Union League
Credit Union National Association - CUNA
National Association of Federal Credit Unions – NAFCU
U.S. Chamber of Commerce

Watch Congressman Duffy during floor debate: