The Consumer Financial Protection Bureau has brought on members of Congress to battle back and forth for months. The Consumer Financial Protection Bureau does not technically exist yet, as it doesn't begin operating until July. The bureau could have regulatory authority over consumer finance and financial products. So far, the rules over what it is allowed to do have not been established and it has no director.
Republicans try to rip apart the bureau
Operations are set to start on July 21 for the Consumer Financial Protection Bureau. However, Congressional Republicans are trying to dilute the regulatory powers that the Consumer Financial Protection Bureau is designed to have once it begins operating, according to CNN reports that republicans try to t dilute the powers of the CFPB. Rules have been introduced to congress on how the agency will carry out their function. Among proposed changes are to install a five member committee rather than a single director, easier Congressional override of any Consumer Financial Protection Bureau action, and to keep the CFPB from conducting any operations until a director has been appointed by the Senate.
Lack of oversight being objected
MarketWatch states that the Consumer Financial Protection Bureau would be funded by regulatory fees that banks pay the Federal Reserve, if the current method is used. However, the formation of the organization has been repeatedly held up in Congress for a number of reasons. Warren was not appointed to set up the CFPB, and too much power would be given to the director; are the only real concerns individuals have with forming the Consumer Financial Protection Bureau. The president selected Warren to be the one who would advise him on the Consumer Financial Protection Bureau. Bloomberg states that the Treasury Secretary and Chairman of the U.S. Senate Banking Committee both have voiced their concerns with restricting the bureau congressional hearings. People will always object when a government regulatory body is formed.
Small banks against further regulation
A concern of small banks, community banks and credit unions has been the new bureau could make it nearly impossible to keep the doors open, according to Reuters. The smaller the financial institution the higher the overhead tends to be and the smaller the profit margins. Banks like Wells Fargo and Bank of America would have simple times paying the fines, however smaller community banks would find it hard to pay them. The higher the cost of compliance, the harder it is for these small banks to make their payments.