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CFPB not opposed to tightening bank’s information sharing protection

The Consumer Financial Protection Bureau will not oppose the push by lenders to tighten the protection of information shared as part of the bank supervision process, CFPB head Richard Cordray has announced.
 
At his first news conference since being named director last week, Cordray allayed concerns that had been raised by the decision of Congress not to subject the bureau to a 2006 law that requires regulators to respect attorney-client privilege. Banks questioned whether exempting the CFPB from the law would nullify their right to the privilege on information given to the agency, Bloomberg reports.
 
"If the banks want to get us listed in the statute, we would welcome that,” Cordray said, according to Bloomberg. “It would put this entirely at rest.”
 
Because the agency was created under the Dodd-Frank Act, banks worried that the bureau might pass supervisory information to state attorneys general.
 
“I personally don’t think (attorney-client protection) is needed,” Cordray said, according to Bloomberg. “It didn’t exist for the other banking agencies until fairly recently.”
 
Cordray did not engage himself in the debate over the legality of his appointment to the position at the news conference. He instead focused on the tasks he must carry out under the Dodd-Frank Act. The bureau will hold a field hearing in Birmingham, Alabama, on January 19 to discuss products of payday lending.
 

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