Banking

GOP and CFPB’s Chopra discover uncommon minute of contract

“We agree on the core of the issue — Americans should have greater control over their sensitive financial data,” House Financial Services Committee Chairman Patrick McHenry (right) informed CPFB Director Rohit Chopra in discussing their concepts to reinforce customer information personal privacy.

Bloomberg News

WASHINGTON — For years, Consumer Financial Protection Bureau Director Rohit Chopra has actually been a popular target of Republican legislators and the monetary market. 

Hearings in front of the Republican-managed House Financial Services Committee including Chopra have, for the last couple of years, concentrated on the lots of — lots of — problems that GOP legislators have about the bureau and its management. While Wednesday’s CFPB oversight hearing was no exception in legislators discovering plenty to quibble with, committee Chairman Rep. Patrick McHenry offered an uncommon nod to a policy problem on which Chopra and his GOP critics have actually discovered commonalities — information personal privacy for customers in monetary services. 

“To be clear, it’s far from perfect, but I believe there is common ground between your proposal and the Data Privacy Act, which the committee advanced earlier this year,” McHenry stated. “We agree on the core of the issue — Americans should have greater control over their sensitive financial data. Consumers should know where their data is going, how it’s used and be able to terminate collection of their data by certain firms.”

McHenry stated that he desires a law on the subject, not simply a rulemaking that might be more quickly reversed under a various director of the bureau. 

“To ensure our data privacy policy is not subject to the whims of any given administration, I believe it’s critical that we make law — not just regulation. I hope we can work constructively on this issue moving forward so Americans’ financial data privacy is protected for the long term,” McHenry stated. 

The CFPB proposition would provide customers a legal right to approve 3rd parties access to savings account deal information, while the GOP expense, though comparable, intends to supply a constant requirement, lower confusion for customers and provide business that hold customer information a more simple set of guidelines to follow instead of a patchwork of state laws. 

To make sure, most of McHenry and other Republicans’ remarks targeted at Chopra were important. McHenry stated that the House would pursue a vote to nullify the CFPB’s small-business information collection guideline, as the Senate carried out in October

Republicans likewise questioned Chopra in his capability as board member on the Federal Deposit Insurance Corp., which has actually come under analysis for its workplace culture. 

“As [a] CFPB director, you have a seat on the FDIC board, where you have made your presence known from the ousting of former FDIC Chairwoman McWilliams to the March bank failures,” McHenry stated. “In other words, you know what the heck is going on at the FDIC.” 

In action to a concern from Rep. Bill Huizenga, R-Mich., chairman of the panel’s examinations subcommittee, Chopra restated that the FDIC board is examining the accusations of unwanted sexual advances of female inspectors and a frat-house environment.

“Certainly any type of these issues are serious, the board has created a bipartisan special committee that will have full authority to investigate it,” Chopra stated. 

The panel’s ranking Democrat, Rep. Maxine Waters of California, explained that the Senate Banking Committee will hold a hearing including the CEOs of the biggest banks next week, while the House will not. Waters stated that she began routine hearings with big-bank CEOs throughout her term as chair of the panel and is dissatisfied that McHenry is not continuing to do so. 

 

“Our members deserve the same opportunity to conduct oversight of our nation’s big banks,” Waters stated. “I hope the chairman will reconsider his decision and convene the CEOs for a hearing as soon as possible.” 

Gabriel

A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

Related Articles

Back to top button