Today, House Financial Services Committee Chairman Barney Frank (D-MA) sent a memo to members of the Committee to address certain "inaccuracies [that] have appeared in the press about institutions exempted from the reach of the [proposed] Consumer Financial Protection Agency (CFPA)." In particular, Chairman Frank noted that exemptions in the Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173) for smaller financial institutions apply "only with respect to examination which will continue to be the responsibility of the institutions’ prudential regulators," and not from certain rules and regulations of the CFPA. In addition, the CFPA will also have "back-up inspection authority and may independently take enforcement action" against such smaller financial institutions.
The creation of the CFPA is one of many new financial regulatory reform proposals contained in H.R. 4173 passed by the House this past December.