U.S. Chamber Statement on CFPA

WASHINGTON, D.C.—The U.S. Chamber of Commerce today responded to suggestions that the proposed Consumer Financial Protection Agency (CFPA) could be housed within the Treasury Department, calling it a victory in form, but not in substance.

"We need strong consumer protections, the elimination of duplicative regulation, and strong enforcement against illegal financial activities," said Ryan McKee, senior director of the Chamber's Center for Capital Markets Competitiveness. However we have continued concerns that the creation of a Consumer Financial Protection Agency would impair financial markets and hinder small businesses ability to access credit at the very time when they need it most.

"While we appreciate the administration's willingness to consider alternatives, suggestions that the proposed CFPA could be housed within the Treasury Department is merely a victory in form, not in substance. Make no mistake about it, this new proposal is nothing more than a wolf in sheep's clothing.

"Lodging consumer protection authority within the Treasury Department would do nothing to remedy one of the fundamental flaws of the original proposal. Continuing to separate the regulation of financial products from regulatory expertise regarding the safety and soundness of financial institutions threatens consumers as well as the stability of the entire financial system.

"Putting the CFPA within a federal agency and giving it the same regulatory authority as a stand-alone agency would not fix our broken system and would still harm consumers and businesses accessibility to credit," McKee said.

Since its inception three years ago, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.

The U.S. Chamber of Commerce is the world's largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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