Legal Blog

Balanced regulatory reform the only realistic solution to CFPB divisiveness

As Published on TheHill.com

The recent combative hearings between House Financial Services Chairman Jeb Hensarling (R-Texas) and the director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, and Hensarling’s proposed changes to the Financial CHOICE Act underscore the deep philosophical divide that exists between the proponents and opponents of the CFPB.

While the sides continue to stake out and evaluate their positions in expectation of a battle over the director and the agency, it might be better for each camp to realize that given the sophistication and degree of integration of the mortgage and financial markets, the respective sides should (and do) have far more in common than they have differences.  A dramatic win by either side, as opposed to a moderate compromise, could hurt both banks and consumers.

Both Democrats and Republicans have at various times agreed that the CFPB should be headed by a bipartisan panel.  Sen. Elizabeth Warren (D-Mass.) – the original architect of the CFPB — initially envisioned the agency as headed by a panel as opposed to a single director.  The concept of a single director was a change made by the Obama administration.

Last year, when the Republicans introduced the Financial Choice Act to amend Dodd Frank, it included a provision changing the CFPB’s leadership to a panel.  Since that time, both Democrats and Republicans have changed their position, with each now wanting a single director, the difference being whether that director can be removed for cause or at the will of the president.  While the latter issue will be decided by the D.C. Court of Appeals if no compromise is reached, the simple fact is that both Democrats and Republicans have seen the merits of panel leadership, a model applied at analogous agencies.  Accordingly, one would think that it is an easy-to-reach compromise.

Click Here to Read the Full Article

 

ABOUT ARI KAREN

Ari Karen Casual -Smallakaren@offitkurman.com  | 240.507.1740

Ari Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide. Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.

 

 

 

 

 

 

 

ABOUT OFFIT KURMAN

Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 135 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our eleven offices serve individual and corporate clients in the Virginia, Washington, DC, Maryland, Delaware, Pennsylvania, New Jersey, and New York City. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.

You can connect with Offit Kurman via our Blog, Facebook, Twitter, Google+, YouTube, and LinkedIn pages. You can also sign up to receive Law Matters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.

MARYLAND | PENNSYLVANIA | VIRGINIA| NEW JERSEY | NEW YORK | DELAWARE | WASHINGTON, DC