Banks Say New Agency's Oversight Is Slow, Costly
By DANIEL WAGNER
WASHINGTON (AP) â¿¿ Bankers and financial industry leaders are criticizing the early efforts of the government's new consumer finance watchdog, saying a slow and inefficient oversight process has slowed lending and made it more difficult for them to do business.
The Consumer Financial Protection Bureau's team that examines banks is understaffed, inexperienced and takes months to tell banks how they scored on routine audits, Consumer Bankers Association CEO Richard Hunt said Tuesday. For some bank examiners, it is their first job out of college, he said.
Hunt said that CFPB Director Richard Cordray is aware of the problems with the examination program and hopes to do better in the agency's second year."He knows that in the first year, it's not acceptable to him that the process is taking too long, and he doesn't have enough examiners," Hunt said in a briefing with reporters. "In the second year he hopes to make it better, where examiners would be more experienced and the banks would not have to wait as long as they do this year." CFPB spokeswoman Jennifer Howard said Hunt had mischaracterized the conversation. "While we are still working to build out and refine our supervision program, we are pleased with the progress being made and the work being done," Howard said. "Director Cordray has great confidence in the supervision team and its leadership," she said. The leaders of the bank oversight team have extensive experience, officials noted. As of this month, nearly half of the CFPB's 240 examiners had significant experience working for other financial regulators, and nearly 100 had high-level certifications from those regulators. Others on the team have industry experience. The agency, which was created as part of the 2010 overhaul of financial rules, is tasked with protecting consumers from excessive fees, unsafe loans and other unfair practices. It sends examiners out to conduct routine examinations of certain types of financial firms, including big banks, mortgage companies, payday lenders, credit bureaus and debt collectors.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV