The House of Representatives late Thursday passed a bill to convert the Consumer Financial Protection Bureau into a five-member commission, giving Congress more leeway over how the new agency operates.
The legislation, H.R. 1315, sponsored by Rep. Sean Duffy, R-Wisc., also makes it easier for the Financial Stability Oversight Council – a body comprised of banking regulators -- to overturn CFPB rules.
The Duffy bill, which passed by a 241-173 vote, now goes to the Senate, which is unlikely to act on the measure.
House Financial Services Committee chairman Spencer Bachus, R-Ala., said the proposed changes will make the bureau more accountable to Congress. The CFPB currently is managed by a single director, much like the FDIC which has a sole chairman, but a supporting board.
"The bill promotes robust consumer protection and certainty to our economy by ensuring the rules issued by the bureau are consistent and do not endanger the safety and soundness of financial institutions," Rep. Bachus said.
Democratic amendments to eliminate FSOC's power over CFPB rules and make the council's deliberations more transparent were voted down.
Rep. Brad Miller, D-N.C., acknowledged the debate over a single director versus a commission, but said, “I think it will be a much stronger agency if there is one director, but everything else in this bill really cripples this agency before it can take hold."
The consumer protection bureau officially opened its doors on Thursday as a new independent government agency.
