CBA’s Johnson to Congress: Hardworking American Consumers Deserve a Credible, Durable CFPB

WASHINGTON, D.C. - Testifying before the U.S. House Financial Services Committee at a hearing entitled "Dodd-Frank Turns 15: Lessons Learned and the Road Ahead," today, Consumer Bankers Association (CBA) President and CEO Lindsey Johnson will reiterate the need for the Consumer Financial Protection Bureau (CFPB) to execute its mission that Congress established, heed the bounds of its statutory authority, and address market failures in an apolitical, data-driven manner.

Key excerpts from Johnson's prepared opening statement are below.

On the importance of the CFPB reverting back to its original mission after years of politicization:

"American consumers deserve a credible, durable CFPB that executes its statutory mission, heeds the bounds of its statutory authority, and addresses true market failures and consumer harms. Unfortunately, the political shifts at the Bureau have been seismic from Administration to Administration. To some degree, Bureau policy will inevitably reflect differences in political philosophies. However, numerous actions by the Bureau's prior leadership have raised important questions about whether it has prioritized politics over people."

On the need for the CFPB to consider the impact its actions - often duplicative to those of prudential regulators - have on consumers and regulated entities alike:

"The Bureau must consider the true impact of its actions on both consumers and its regulated entities. To date, the Bureau is not required to perform a rigorous cost-benefit analysis to ensure the actions it is taking outweigh both financial costs and costs to the consumers […] The Bureau also needs to take into account the cumulative impact of the numerous oversight agencies for banks. Legislation to review the impact of overlapping regulations and the impacts on consumer access, and overall economic activity would greatly benefit consumers without diminishing the supervision and examination of banks."

On the need to achieve permanent CFPB reforms through legislation:

"This Committee has a critical role to play-to make more permanent reforms that can reboot the Bureau into a credible, durable, and more stable regulator […] CBA stands ready to work with […] the committee to achieve thoughtful and effective change to ensure the Bureau is a strong and durable consumer protection regulator."

To read Johnson's full written testimony, click HERE. To watch the hearing via livestream, click HERE.

CBA Advocacy

• To read CBA's white paper calling for CFPB reforms to transform the CFPB into the credible, durable regulator that consumers deserve, click HERE.
• To read CBA President and CEO Lindsey Johnson's letter to the editor in The Wall Street Journal calling for a reboot at the CFPB, click HERE.
• To read CBA President and CEO Lindsey Johnson's op-ed on the need for financial regulations to focus on sound policy, not partisan politics, click HERE.
• To read CBA's "Vision for America - A Bank Policy Agenda for All," which outlines the retail banking industry's priorities, beliefs, and positions on a number of consumer-focused financial services policy issues, click HERE.