Thursday, February 10, 2011

Legislation Would Place Bureau of Consumer Financial Protection Under Treasury and Congressional Appropriations

Legislation amending Dodd-Frank to move the Bureau of Consumer Financial Protection into the Department of the Treasury has been introduced by Rep. Randy Neugebauer (R-TX), Chairman of the Oversight and Investigation Subcommittee of the House Financial Services Committee. HR 557 is an effort to make the Bureau more accountable. According to the Chairman, Dodd-Frank placed the Bureau within the purview of the Federal Reserve Board without any Congressional oversight or financial accountability guiding the Bureau’s actions. Given the significant and perhaps over-regulating powers the Bureau has been given, the Chairman believes that it is imperative that Congress have a say on the appropriation of money funding the Bureau’s operation. Federal agencies generally must show true transparency and must explain the intent of their processes, he emphasized, and the Board is no exception.