Saying it will be the “start of a robust discussion,’’ on the set up of the Bureau of Consumer Financial Protection, House Financial Institutions and Consumer Credit Subcommittee Chairman Shelley Moore Capito announced an oversight hearing next Wednesday.
Capito (R-W.Va.) said the hearing will focus on how the bureau is being set up and what powers it will have on the regulation of consumer financial products.
Though credit unions must comply with regulations issued by the bureau, only three credit unions –those with assets of $10 billion or more—are subject to direct examination by the bureau.
Elizabeth Warren, whom President Obama has named as the point person for setting up the bureau and who came up with the idea for it, will be the witness at the session.
The bureau, which is scheduled to be launched this summer, will be an independent agency housed inside the Federal Reserve. It was created as part of the Dodd-Frank financial overhaul bill passed by Congress last year. Almost all Republicans in both chambers opposed the measure and several singled out the bureau for criticism.
House Financial Services Committee Chairman Spencer Bachus (R-Ala.) noted in a statement that Warren has “not been nominated by the President to serve as the Bureau’s director, yet she is working as its de facto director and hiring staff. As she has gone about her work, it has become even clearer to me that the Dodd-Frank Act put too much power in the hands of one person.”
The hearing is scheduled to begin at 10:00 a.m.