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>>Narrator: This legislative summary is provided to you by Main Street Insider
This week we examine proposals to limit the authority of the Consumer Financial Protection Bureau or CFPB
Informally headed by Elizabeth Warren, the CFPB is one of the most controversial items to come out of the Dodd-Frank financial reform bill
In July of this year, much of it’s authority will go into effect, leading Congressional Republicans to propose legislation aimed at curbing that authority
>>Klein: They can't get rid of the CFPB, it's popular and they don't have the votes for it, but they can make its life very miserable
>>Narrator: On April 6th, the House Committee on Financial Services held a hearing to discuss four specific proposals
H.R. 1121 would create a five person commission to run the CFPB
H.R. 1315 would make it easier for the Financial Oversight Council to overturn CFPB regulations
And two discussion drafts: One aimed at preventing the CFPB from participating in bank examinations before July 21st
And the other to strip CFPB of it’s regulatory authority until a director is appointed and confirmed by the Senate
Though most supporters of these proposals would like to see the agency abolished all together, they believe action is needed to make the CFPB accountable
>>Kissel: It’s unaccountable to Congress. The woman who is running it, Ms. Warren, has been appointed. Its rules will be extremely difficult, politically, to overturn
>>Narrator: Opponents say the accountability problem is not with the CFPB but with the financial sector
>>Warren: I hope that every time we talk about accountability, that we're also talking about the accountability of financial institutions
That there will be someone, that there will be a cop on the beat to make sure that they follow the law
>>Narrator: A hearing was held on this issue in a subcommittee of the House Financial Services Committee but no further action is scheduled
For additional information and more 90 Second Summaries, go to www.MainStreetInsider.org