By Peter Schroeder - 04/04/11 05:02 PM EDT
The bills slated for consideration at Wednesday's hearing would ensure GOP input into the CFPB's dealings, make it easier for its rules to be overturned and ensure the bureau is limited in its reach until it officially opens its doors in July.
One bill on tap would change the head of the CFPB to a bipartisan five-member commission instead of single director. That legislation, introduced by Capito and committee Chairman Spencer Bachus (R-Ala.) would ensure Republicans a seat in running the new bureau, as only three of the presidentially appointed members could be from the same political party.
Another bill, introduced Friday by freshman Rep. Sean Duffy (R-Wis.), would make it easier for the new Financial Stability Oversight Council (FSOC) to overturn rules made by the CFPB. The FSOC is an inter-agency government working group charged with protecting the stability of the financial system as a whole.
Under current law, the FSOC can reject CFPB rules by a two-thirds majority, and only if it deems the rules would endanger the entire financial system. It also only has 90 days to review the CFPB's proposed rule and must file a review petition within 10 days of when the proposal is published.
Under Duffy's bill, the FSOC could reject CFPB rules by a simple majority, and just as long as it runs counter to safe and sound operations of U.S. financial institutions. It also would give the FSOC more time to review the proposals.
Two discussion drafts will also be topics of discussion. One would prevent regulators from allowing the CFPB to participate in bank examinations before July 21. Another would prevent the CFPB from receiving its new authority on that date, as mandated by Dodd-Frank, if a CFPB director has not been appointed and confirmed by the Senate.