H.R.3445 - Bureau of Consumer Financial Protection Commission Act (119th Congress)
Summary
H.R. 3445, the Bureau of Consumer Financial Protection Commission Act, seeks to restructure the Bureau of Consumer Financial Protection (BCFP) by replacing the single director with a five-member commission. The commission members would be appointed by the President with Senate approval, ensuring a more diverse range of expertise and potentially reducing the influence of any single individual. The bill also aims to make the BCFP an independent agency, further insulating it from political pressures.
Expected Effects
The primary effect of this bill would be a shift in the BCFP's governance from a director-led agency to a commission-led agency. This could lead to changes in the BCFP's regulatory approach, enforcement priorities, and overall responsiveness to consumer financial issues. The changes also include conforming amendments to other acts to reflect the change in leadership structure.
Potential Benefits
- Increased Stability: A commission structure may provide more stability and continuity in the BCFP's policies compared to a single director who can be replaced with each administration.
- Diverse Perspectives: The requirement for members with private sector experience and state bank supervision experience could bring a broader range of perspectives to the BCFP's decision-making process.
- Checks and Balances: A commission may be less susceptible to political influence than a single director, as decisions would require consensus among multiple members.
- Enhanced Expertise: The commission structure allows for the inclusion of members with specialized knowledge in consumer finance, potentially leading to more informed regulatory decisions.
Potential Disadvantages
- Potential for Gridlock: A commission structure could lead to disagreements and gridlock, slowing down the BCFP's ability to respond quickly to emerging consumer financial issues.
- Reduced Accountability: With multiple decision-makers, it may be more difficult to assign responsibility and accountability for the BCFP's actions.
- Increased Political Influence: The appointment process could become highly politicized, with each party vying for control of the commission.
- Complexity and Inefficiency: Coordinating the actions of five commissioners may be more complex and less efficient than having a single director.
Constitutional Alignment
The bill's provisions regarding the appointment of commission members by the President with Senate approval aligns with the Appointments Clause (Article II, Section 2, Clause 2) of the U.S. Constitution. This clause grants the President the power to nominate, and by and with the advice and consent of the Senate, appoint ambassadors, other public ministers and consuls, judges of the Supreme Court, and all other officers of the United States, whose appointments are not otherwise provided for in the Constitution.
The bill's attempt to make the BCFP an independent agency could raise questions regarding the separation of powers and the President's authority over executive agencies. However, Congress has the power to establish agencies and define their powers, so the bill is likely constitutional.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).