WASHINGTON — During her morning session at CUNA’s Government Affairs Conference, Sen. Elizabeth Warren (D-Mass.) asked credit unions to advocate for the Consumer Financial Protection Bureau and the confirmation of Richard Cordray while hiking the hill later Wednesday.
Warren also warned that the alternative to the CFPB’s rules would not include exceptions or safe harbors for credit unions.
“There are the more complex automatic default rules of Dodd-Frank, the risk of more litigation, the possibility of a free pass for the unregulated non-depository financial institutions,” the newly elected senator said, describing what would happen should the CFPB be eliminated.
“We are back to automatic default Dodd-Frank rules that, unlike the QM ones, lack the exemptions for small financial institutions. I hope you listened closely to that: back to Dodd-Frank default rules that lack exemptions for small financial institutions,” Warren said.
The Senate Banking Committee member, considered a founder of the CFPB, urged credit unions to use their political clout to tell members of Congress to “stop re-litigating settled decisions,” a nod to a recent District of Columbia appeals court ruling that declared President Obama’s National Labor Relations Board appointments unconstitutional.
The ruling could set a precedent for another lawsuit in the same court that challenges Cordray’s appointment and the Dodd-Frank Act.
“(It’s) time to confirm a director so the CFPB can create a safe harbor for your work so you can go about the business of serving your members. It's time to move forward,” Warren said. Warren called Cordray a “stellar director” who has won praise from consumer and industry groups for his balanced and measured approach to rulemaking. She added that she doesn’t know how anyone could still be concerned that the CFPB would be an overly aggressive regulator.
“Rich has been providing balance, creating space for credit unions and other small financial institutions to run their businesses and serve their customers without drowning them in regulations,” she said
Also from 2013 GAC:
- Feb. 27, 2013 Yay, Nay, Political Hay: GAC Day 3 in Photos
- Feb. 27, 2013 Trailblazer Awards Reception in Photos
- Feb. 27, 2013 Warren Asks for CFPB, Cordray Support
- Feb. 27, 2013 Survey Shows Major Purchase Delays (Video)
- Feb. 27, 2013 Deal With It: Obamacare a Fact of Life
- Feb. 27, 2013 We’ve Only Just Begun: NCUA, CFPB on Consumer Protections
- Feb. 26, 2013 Pols and Gavel Passing: GAC Day 2 in Photos
- Feb. 26, 2013 NCUF Gets $135,000 Gift From CUNA Mutual
- Feb. 26, 2013 Bachus Says Congress May Revisit Durbin, Dodd-Frank
- Feb. 26, 2013 Hensarling Stands by Tax Exemption
- Feb. 26, 2013 Brokaw, Chatzky and Award Winners: GAC Day 1 in Photos
- Feb. 26, 2013 Kids Add Zing to Wegner Award Winners
- Feb. 25, 2013 Tom Brokaw Promotes Public Service Academies
- Feb. 25, 2013 Chip Filson Announces NCUA Board Bid, Petition Drive
- Feb. 25, 2013 Matz Praises Agency’s Ability to Change With Times
- Feb. 25, 2013 CUNA Mutual Debuts AskAuto App at GAC
- Feb. 25, 2013 CUNA Survey Shows Room for Exam Improvement
- On Video: Shell Geismar CEO Has Tech Tools on His GAC Agenda
- On Video: Arizona State SVP Has Washington on His Mind
- On Video: Flying Freeborn to DC for GAC
- On Video: Halleck and Hiking the Hill
- On Video: Muniz’s Message to Washington
- Not for CEOs: Successful Succession Topic of GAC Talk