I've seen arguments (in @morningmoneyben and elsewhere) that the Warren/Garcia proposal to give the @CFPB a say in bank mergers is unnecessary because the CFPB Director already sits on the FDIC Board.
I want to explain why these arguments are wrong. 1/
I want to explain why these arguments are wrong. 1/
First, the largest banks and bank holding companies are within the OCC's and Fed's jurisdiction - not the FDIC's.
So the CFPB is currently excluded from reviewing mergers involving the banks it supervises (those with >$10B in assets). 2/
So the CFPB is currently excluded from reviewing mergers involving the banks it supervises (those with >$10B in assets). 2/
Second, even if the FDIC had authority over a big-bank merger, the CFPB Director could be outvoted by the FDIC's other four members, whose primary focus is safety-and-soundness, not consumer protection.
That's precisely the reason the CFPB was created in the first place! /3
That's precisely the reason the CFPB was created in the first place! /3
In any event, the CFPB proposal is just one of many different provisions in the Warren/Garcia bill that would reinvigorate the bank merger review process to protect consumers and the financial system. Here's a brief overview of the rest. /end
