Client Alerts
CFPB Initiates Large Bank Supervision Program
July 14, 2011
Kevin L. Petrasic
With the statement, The new consumer agency is here to make sure that markets work for American families, and our bank supervision program is a big part of that, Elizabeth Warren, the Treasurys Special Advisor on the Consumer Financial Protection Bureau (CFPB), officially launched the new agencys bank supervision program. Notwithstanding the lack of a Director to run the fledgling agency, the CFPB is moving forward on one of the key elements of its mission the supervision and oversight of large banks consumer financial protection compliance programs. Emphasizing that the CFPB will be hitting the ground running, Warren noted, Starting on July 21, we will be a cop on the beat examining banks and protecting consumers.
Interestingly, the announcement was made through a July 12, 2011 press release issued by the Treasury Department, underscoring that, at least for now, official pronouncements regarding the CFPBs work and agenda are emanating from Warrens authority from the Treasury Secretary to perform the functions of the [CFPB] until a CFPB Director is confirmed by the Senate.
In discussing the CFPBs initiation of its bank supervision program, Warren highlighted the scope, staffing and training, and supervisory process that the CFPB will pursue, as well as immediate efforts and actions that the agency will take in establishing channels of communication with large banks (i.e., holding assets greater than $10 billion).