In an unexpected move, the financial services industry is coming to the defense
of the Consumer Financial Protection Bureau. While still wary of the agency's
initiatives, banks are solidly on its side in terms of regulating the
competition. In comment letters on the new regulator's options for supervising
nonbanks -- including payday loan providers and nonbank mortgage lenders --
banking trade groups uncharacteristically urge the bureau to be relentless with
its nonbank supervision program and laud CFPB for starting the program early.
The American Bankers Association "fully supports the bureau's preliminary
efforts to define its nondepository supervisory scope as it prepares for the
future exercise of that supervision authority," Virginia O'Neill, senior counsel
for the ABA's Center for Regulatory Compliance, wrote in an Aug. 15 letter.
"This approach has been a model effort to seek broad, careful, and thoughtful
input in the important early stages of developing a rule proposal."
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