NCUA Chairman Debbie Matz attended the first meeting of a committee that will probably cause her agency to lose personnel.
Treasury Secretary Timothy Geithner convened a meeting of seven agency heads aimed at planning for the creation of the new Consumer Financial Protection Bureau. The personnel for this new agency, which was created by the financial overhaul bill signed by President Obama last week, are expected to come mostly from the NCUA, the Treasury Department, the Department of Housing and Urban Affairs, the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Trade Commission, and the Federal Deposit Insurance Corporation.
"This new Bureau is a tangible manifestation of a new commitment to sensible and effective consumer protections. I am confident that consumers will benefit from an enhanced ability to understand an often complex and confusing landscape of financial products; and I am equally confident that the NCUA's efforts to protect credit union members will be augmented by our work with the CFPB," Matz said in a statement.
The CFPB will be an independent agency but will physically housed in the Federal Reserve. Obama hasn't announced who the agency's director will be.
The law gives the Treasury Department responsibility for setting up the CFPB and Geithner must transfer regulatory functions to the new agency between six and 12 months after the bill is enacted. Geithner can delay the transfer an additional six months if the time is needed