Warren Opposes CFPB Reforms
Sen. Elizabeth Warren (D-Mass.) vowed to oppose any changes that restrain the CFPB.
“I want to be clear about regulatory changes,” Warren said in a speech at CUNA’s GAC.
“If credit unions and community banks can show me regulations of supervisory practices that are unnecessary, then I'm ready to work together to find a better approach. But I will not support changes that hamstring the CFPB, and I will not go back to a world where big financial institutions can make billions of dollars by cheating their customers," she added.
Warren said she wanted to increase transparency in the marketplace when she set up the CFPB.
“I wanted to level the playing field for credit unions and other small providers – that meant that we needed clear rules that give a break to those that provide transparent, valuable products to their customers,” she said. “Right at the beginning when I was trying to put this agency together, credit unions were a great partner in helping set the agency on the right path and helping keep it on the right path and I want to thank you for that.”
Warren, a member of the $476 million Harvard University Employees Credit Union in Cambridge, Mass., called credit unions a model for financial services institutions.
“I have been a proud member of a credit union for many years and I know from experience that credit unions are a model for how financial services institutions can provide real value to their customers and to their communities,” the former Harvard University professor said.
“As one Wall Street scandal after another unfolded, the credit unions have been a bright spot in the financial industry. Credit unions did not break this economy,” she added.
Warren said credit unions did not build business models around tricking their customers.
“When the economy faltered, they did not turn their backs on the families and small businesses that needed them. Instead, credit unions worked hard to lead our economic recovery, responsibly and reliably providing credit to their members who needed them,” she said.
Warren also said Congress should eliminate annual subsidies for too-big-to-fail banks.
“Let’s end the kid gloves treatment for big banks when their executives break the law, let’s prosecute them and put them in jail the same way we do other people when they break the law,” she said.