Administration looks to curb CFPB powers, change bank rules

Administration looks to curb CFPB powers, change bank rules

Administration looks to curb CFPB powers, change bank rules

President Donald Trump's administration is expected to roll out a plan to curb the powers of the Consumer Financial Protections Burea (CFPB) and lay out its review of a large swath of banking regulations in a report expected to be released as early as Monday.

Dodd-Frank is certainly imperfect, but the House bill wrongly adopts President Trump's assertion that it is a "disaster".

The almost 150-page report that suggested more than 100 changes, most of which would be made through regulators rather than Congress, Treasury Secretary Steven Mnuchin said in an interview. Under Cordray's leadership, the bureau has collected billions of dollars in penalities and restitution from major banks, mortgage lenders, payday loan operations, and debt collectors for violating consumer protection rules.

Fifteen pages of recommendations resemble significant aspects of the Republican bill passed last week by the House.

Federal stress test would be conducted once every two years, under the new law; a reform that J.W. Verret, former chief economist at House Financial Services Committee said would further increase lending activities and invoke a more "consistency" for financial institutions. Mnuchin wrote regulators would consider other potential measures of stability beyond those outlined in Dodd-Frank, and stop making "unrealistically conservative" analyses about what banks could do under financial stress.

During his campaign past year, Trump often slammed Wall Street for "getting away with murder". He promised to do "a big number" on it.

Wall Street, which was enjoying massive deregulation at that time, began to create mortgage bonds from "subprime" mortgages. "It is inexcusable that the administration has targeted the most vulnerable people in our society to be the ones that bear the brunt of their ideological push", says Michael Barr, University of Michigan Law School professor and a key architect of the Dodd-Frank Act. Consumer advocates and a coalition of 17 state attorneys general have filed motions supporting the bureau, saying it is part of a "powerful enforcement partnership" with the states.

Monday's report is one of four that Treasury plans to offer in response to a February 3 White House executive order, which called for Treasury to identify "core principles" for regulating the financial system.

"For many creditworthy borrowers, they are paying $500 more for an auto loan ..."

The Trump administration is proposing to curb the authority of the consumer finance watchdog created following the economic crisis as it drives toward easing restrictions on banks and financial institutions.

An accounting provided by Sen.

Democratic Sen. Sherrod Brown noted that the Treasury Department consulted with industry groups more than consumer groups, by a ratio of 17-to-1 while developing the report.

The bill would repeal a rule that bans banks from engaging in trading for their own profit using federally-insured deposits, or forming certain relationships with private equity funds. Such a rule is believed to have prevented the net accumulation of new assets, which dint go down well with banks.

I support the need to amend some of Dodd-Frank, especially as it applies to regional and community banks. Once the council deems a company "systemically important", it becomes subject to stricter rules. For now, passage of the bill amounts to little more than a messaging exercise from the House GOP, since Senate Republicans do not plan to take up the legislation as written.

Mnuchin has criticized the provision, but he has also said that Treasury has yet to reach a final decision. In comparison, the Treasury report only suggests that the restrictions be less stringent. The notion of restoring Glass-Steagall is anathema to banks and their lobbyists.

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