Washington, D.C. (Oct. 11, 2016)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine released this statement on today’s court ruling in PHH v. CFPB that the Consumer Financial Protection Bureau’s single-director structure is unconstitutional.
“ICBA has long held concerns with the Consumer Financial Protection Bureau’s governance structure, which places excessive regulatory authority in the hands of a single director. As a result, we have for years called on Congress to replace single-director governance of the CFPB with a five-member commission. This provision of ICBA’s Plan for Prosperity would allow for more diverse views and expertise on issues before the agency and support our nation’s system of checks and balances.
“While today’s court ruling rightly concludes that the CFPB’s existing structure places excessive executive power in its director, its decision to require the agency head to serve at the pleasure of the president does not solve the underlying issue. Restructuring the agency so that it is governed by a five-member commission—a provision that the House of Representatives passed earlier this year—would instead ensure more balanced regulatory oversight and consumer protection.
“Additionally, ICBA supports the court’s rulings that the CFPB overstepped its bounds and overturned longstanding administrative guidance without notice in its action against PHH. We look forward to continuing to monitor the case as it continues to move through the judicial system.”
The Independent Community Bankers of America®, the nation’s voice for nearly 6,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services.