Shelby Adamant on CFPB Being Under a Bank Regulator

A federal consumer protection bureau should be under the oversight of banking regulators and coordinate its activities with those regulators, according to Sen. Richard Shelby, R-Ala. The ranking Republican on the Senate Banking Committee wants to restructure a Democratic proposal that creates a new and independent Consumer Financial Protection Bureau. "I will do everything I can to make sure it is not running out on its own, causing a heck of a lot of trouble," Sen. Shelby told an American Bankers Association summit on Thursday. Banking committee chairman Christopher Dodd, D-Conn., wants to house a CFPB at the Federal Reserve Board but keep it independent with a director appointed by the president and confirmed by the Senate. This new consumer regulator would have enforcement and examination powers, along with the ability to act quickly to stop abusive lending practices. Only a two-thirds vote by a new nine-member Systemic Risk Council chaired by the Treasury secretary could overturn a CFPB rule. Sen. Shelby contends the CFPB is too independent. Consumer protection should not "trump safety and soundness," the Alabama senator said.