WASHINGTON (2/4/13)--Sen. Jerry Moran (R-Kansas) introduced a bill (S. 205) Friday that would replace the director's position at the Consumer Financial Protection Bureau with a five-person panel. The bill mirrors one Moran offered in the last Congress.
The Credit Union National Association backs the concept of a multi-member directors panel but maintains it should go beyond the five-member model. CUNA believes a CFPB board should include seats statutorily designated for industry representatives, including a state or federal credit union regulator, and possibly a state consumer agency representative.
CUNA maintains that industry representation would enhance the quality of regulation promulgated by the CFPB by ensuring both the consumer perspective as well as the industry perspective is represented in the decision-making process.
The Moran bill also would bring the CFPB under the regular appropriations process; currently the bureau receives around $400 million in funding directly from the Federal Reserve.
Many proponents of the changes carried in Moran's bill argue that they would make the CFPB more accountable and provide additional checks and balances.
A number of GOP lawmakers vowed last year to block confirmation of a director unless those changes were made. In fact, 43 Senate Republicans sent a letter to President Obama Friday and re-committed to their vow.
That opposition, in large part, led to President Obama's recess appointment last year of Richard Cordray as CFPB director.