Why does the bank not want the agency to disappear

Over the years, US financial companies have depicted the Consumer Financial Protection Bureau – Chief American Consumer Finance Guard – Courts and Media, illegally and incorrectly depicted as a target of industry players.

Now, with the Jeevan support with the CFPB after the release of a stop-work order by the Trump administration and closing its headquarters, the agency finds itself with an unexpected colleague: the same bank that was strongly complained about his rules and enforcement works under former director Rohit Chopra.

This is because if the Trump administration is successful in reducing CFPB in one of its own shells, banks will find themselves directly competing with non-bank financial players, from Big Tech and Fintech firms to hostage, auto and parade lender, which enjoy less federal investigation than FDIC-supported institutions.

“CFPB is the only federal agency that takes care of non-divisional institutions, so it will go away,” an experienced banking lawyer David Silbarman said, which gives lectures in Yale Law School. “Payment Apps Papailstrip, Cash appThose types of things, they will get closer to a free ride at the federal level. ,

This shift clock can be taken back to the pre-2008 environment, where it was largely abandoned by state officials to prevent consumers from bursting by non-bank providers. The CFPB was created after the 2008 financial crisis which was caused by the non -existent lending.

But since then, digital players have made significant contradiction by offering banking services through the mobile phone app. According to data from the cornestone advisors, Fintech, led by Payal and Chime, jointly gave several new accounts to all major and regional banks last year.

“If you are a big bank, you certainly do not want a world that has a much less regulatory inspection than non-banks and banks,” Silberman said.

CFPB and his employees are limited after the acting director Russell Wout last month, after issuing the instructions to the then 1,700 employees of the agency. While working with the operators of the Government Efficiency Department of Elon Musk, nearly 200 workers were quickly closed, allegedly took steps to eliminate the agency’s building lease and canceled the reunion of the required contracts for legally compulsory duties.

In the internal email released on Friday, CFPB Chief Operating Officer Adam Martinez planned to remove around 800 supervision and enforcement workers.

Senior CFPB officials shared plans for more layoffs that would leave the agency with only five employees, CNBC has reported. This will succumb to the agency’s ability to fulfill its maintenance and enforcement duties.

It seems that the Consumer Bankers Association, a frequent CFPB critic would also want to do. The CBA, which represents the country’s largest retail banks, has sued the CFPB in the previous year, scrutinizing the rules to limit overdraft and credit card late fees. Recently, it noted the role of CFPB in keeping a level sports ground among the participants of the market.

CBA President Lindsay Johnson said in a statement to CBAC, “We believe that the new leadership to continue the need for big banks, looking at the intersections with prudent regulatory examinations,” CBA President Lindsay Johnson said. “Important, CFPB is the only examiner of non-bank financial institutions.”

The plan to hobby was stopped by a federal judge, which is now considering the qualities of the case brought by a CFPB Union, asking for the initial prohibition.

A hearing where Martinez has been scheduled to testify, is scheduled for Monday.

Meanwhile, bank officials have gone from the opponent of CFPB, who will disappear among the people concerned.

At a October bankers Convention in New York, JP Morgan Chase CEO Jamie Dimon encouraged his colleagues to “fight back” against regulators. A few months before that, the bank said that he could sue the CFPB on his investigation in the Payment Network Jail from the colleague.

Dimon said in the convention, “We are sueing our regulators repeatedly because things are getting inappropriate and unjust, and they are harming the companies, causing harm to very low paid individuals of these rules.”

Now, the consensus of the fact that CFPB is an initial push for “removal” is a mistake. In addition to increasing the danger arising out of non-banks, the current rules from CFPB will still be on books, but there will be no one to update them as the industry develops.

Industry advocates say small banks and credit unions will be denied even more than their big colleagues, as the industry advocates said, as they were never regulated by the agency and will face regulatory investigation as before.

The Trump refused to speak about the administration, “Traditional knowledge is not right that banks only want to remove CFPB, or that bank regulatory consolidation.” “They want thoughtful policies that will support economic development and maintain security and sound.”

A senior CFPB lawyer, who lost his place in recent weeks, said that the industry’s alignment with Republican was back.

The lawyer said, “They are living in a world in which the entire non-bank financial services industry is irregular every day, while they take care of the Federal Reserve, FDIC and OCC.” “This is a world where ApplePayPal, Cash App and X Wild run for four years. You get success. “