H.R. 3445: Bureau of Consumer Financial Protection Commission Act

This bill, known as the Bureau of Consumer Financial Protection Commission Act, proposes to restructure the Bureau of Consumer Financial Protection (CFPB) into an independent agency that will be managed by a commission rather than a single director. Here are the main points of the bill:

Independence and Structure

The bill aims to amend the Consumer Financial Protection Act of 2010, altering the Federal Reserve System's oversight of the Bureau. It changes the Bureau's designation from an "independent bureau" to an "independent agency." The management structure will transition from a single Director to a five-member commission.

Commission Composition

The commission will consist of five members who are appointed by the President and confirmed by the Senate. Key aspects of the membership include:

• At least two members must have private sector experience in consumer financial products and services.
• At least one member must have experience as a State bank supervisor.
• The initial terms of the members will be staggered at one to five years, with subsequent terms lasting five years.
• No more than three members of the commission can belong to the same political party.

Chair of the Commission

The bill designates the Chair as the primary executive officer, responsible for appointing staff and overseeing operations. The current Director of the Bureau will serve as the first Chair until the commission is fully appointed.

Regulatory Authority

The new commission will have the authority to establish regulations necessary for its operations and will oversee the Bureau’s budget and financial decisions. The Chair will need commission approval to submit budget requests or estimates.

Impact on Existing Regulations

The bill also seeks to revise various references in existing laws, replacing terms related to a single Director with references to the commission and its Chair. This includes updates to multiple federal acts that interact with or reference the Bureau.

Quorum and Operations

The bill establishes quorum requirements for the commission’s operations, highlighting that three members will be needed to conduct business, with specific rules for scenarios of reduced membership due to vacancies.

Consequences of Vacancies

In the case of vacancies on the commission, the remaining members will retain the authority to continue operations, ensuring that the commission can function effectively even if all member positions are not filled.

Relevant Companies

• JPM: JPMorgan Chase & Co. may be impacted due to its significant involvement in consumer financial products and services.
• GS: Goldman Sachs Group, Inc. could be affected given its operations in consumer finance through various platforms.
• AXP: American Express Company may see changing regulations surrounding consumer credit and financial products.