CFPB Reform: Funding and Leadership Structure


What It Is

The CFPB needs reform, both in terms of its leadership structure and funding mechanism. As the agency responsible for overseeing an industry that affects millions of Americans, the Bureau lacks the accountability measures necessary to develop well-founded rules and deliver market stability despite shifting political winds.

Why It Matters

The CFPB’s single director structure has made the Bureau a political lightning rod, instead of a steady and consistent voice for consumer protection regulation and best practices expected from a world class regulator. Policy proclamations based on ideological preferences rather than on data and stakeholder input only create confusion and erode confidence in our highly competitive and well-regulated financial system.

What We Believe

The Bureau’s single leadership structure should be replaced with a Senate-confirmed, bipartisan 5-person commission.
The CFPB should be subjected to the annual Congressional appropriations process and the Bureau should be required to conduct a rigorous cost-benefit analysis as a part of the rulemaking process.
An independent Inspector General (IG) should be established, separate from the existing IG at the Federal Reserve, to bring more accountability to the Bureau and provide Congress with important information on its internal operations.


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