Senate GOP Readies Effort to Nix CFPB’s Arbitration Rule

From: BNA

By Rob Tricchinelli and Jeff Bater

Senate Republicans aren’t wasting any time in trying to negate the CFPB’s rule barring the use of mandatory arbitration to block class actions by consumers, even as federal regulators lay the groundwork for their own attempts to delay or halt the rule.

An effort is already underway to scotch the rule using the Congressional Review Act, a statute that allows Congress to overturn executive branch actions, and a resolution could be unveiled as soon as July 19, Senate Banking Chairman Mike Crapo (R-Idaho) told Bloomberg BNA in a brief interview.

Anti-money laundering efforts examined at House subcommittee hearing

Editor’s Note: See, Unwarranted Deputization: Increased Delegation of Law Enforcement Duties to Financial Institutions Undermines American Competitiveness.

From: Financial Regulation News

At a hearing last week by the House Financial Institutions and Consumer Credit Subcommittee, lawmakers and experts examined the federal government’s anti-money laundering (AML) efforts under the Bank Secrecy Act (BSA).

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“The goals of the Bank Secrecy Act and anti-money laundering (BSA/AML) legal regime are laudable: financial institutions and government agencies should work together to prevent money laundering and terrorist financing. However, aspects of this regulation have spiraled out-of-control and resulted in a breakdown between law enforcement, financial regulators, and institutions. The de-risking seen throughout the financial services space, in part because of BSA/AML regulation, actually increases risk to the system,” Rep. Blaine Luetkemeyer (R-MO), subcommittee chair, said. “We cannot afford to have an ineffective BSA/AML regime.”

Finance Is In the Midst of a Regulatory Reform Quilting Bee

From: Real Clear Markets

By Hester Peirce

Washington, D.C., is in the midst of a regulatory reform quilting bee. Several different parties are gathering up regulatory reform ideas for potential inclusion in a reworked financial regulatory framework. The end result could be hideous, or it could be an elegant, effective, and efficient amalgamation of these disparate regulatory efforts. The key to getting the latter result is ensuring that each included contribution furthers our collective desire to see a stronger, safer financial system that serves the needs of individuals and businesses.

CFPB To Intertwine “Right Consumer, Right Amount” Creditor and Debt Collector Rules

From: insideARM

Written by: Stephanie Eidelman

Today CFPB Director Richard Cordray announced that the Bureau will be separating the “right consumer, right amount” aspect of its debt collection rulemaking in order to ensure that complexities are properly addressed by intertwining rules for both creditors and their clients.

At its summer meeting of the Consumer Financial Protection Bureau’s (CFPB) Consumer Advisory Board, Director Cordray’s opening remarks addressed multiple topics, including:

  1. Transparancy in the credit card market
  2. CFPB research into credit invisibility
  3. The CFPB’s mandate to collect data on the availability of credit to small business

N.J. regulators conducting comprehensive exam of Prudential Financial

From: Reuters

By Suzanne Barlyn

New Jersey insurance regulators are conducting a comprehensive exam of Prudential Financial Inc (PRU.N) as part of a new type of state supervisory role over the company, a Prudential executive said in a presentation to investors on Tuesday.

The state is in the midst of the regulatory exam, launched as part of New Jersey’s role as the company’s “group supervisor,” a new type of authority for the state, which in recent years has been working in tandem with U.S. federal regulators who oversee a handful of large insurance companies, including Prudential.

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