[Congressional Record Volume 158, Number 49 (Monday, March 26, 2012)]
[House]
[Pages H1555-H1556]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1550
FDIA AMENDMENTS REGARDING DISCLOSURES TO THE BUREAU OF CONSUMER
FINANCIAL PROTECTION
Mrs. BIGGERT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4014) to amend the Federal Deposit Insurance Act with
respect to information provided to the Bureau of Consumer Financial
Protection.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4014
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. FDIA AMENDMENTS REGARDING DISCLOSURES TO THE
BUREAU OF CONSUMER FINANCIAL PROTECTION.
The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.)
is amended--
(1) in section 11(t)(2)(A) (12 U.S.C. 1821(t)(2)(A)), by
inserting after clause (v) the following:
``(vi) The Bureau of Consumer Financial Protection.''; and
(2) in section 18(x) (12 U.S.C. 1828(x))--
(A) by inserting ``the Bureau of Consumer Financial
Protection,'' before ``any Federal banking agency'' each
place such term appears; and
(B) by striking ``such agency'' each place such term
appears and inserting ``such Bureau, agency''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Illinois (Mrs. Biggert) and the gentleman from Texas (Mr. Al Green)
each will control 20 minutes.
The Chair recognizes the gentlewoman from Illinois.
General Leave
Mrs. BIGGERT. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and to add extraneous material on this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Illinois?
There was no objection.
Mrs. BIGGERT. Mr. Speaker, at this time, I would like to yield such
time as he may consume to the gentleman from Michigan (Mr. Huizenga),
the sponsor of this bill.
Mr. HUIZENGA of Michigan. Mr. Speaker, the Consumer Financial
Protection Bureau, a massive new branch of government created under the
Dodd-Frank Act, fails to safeguard proprietary information given to the
Bureau by regulated entities. I rise today in support of my bill, H.R.
4014, which will create more peace of mind for financial institutions
while offering more oversight and consumer protections to hardworking
taxpayers.
If you remember one thing, remember this: we all agree on stringent
consumer protections. This bill is a commonsense measure that adds
necessary oversight to the Bureau. Specifically, H.R. 4014 would
immediately close a loophole in the law that was created during the
creation of the CFPB. Currently, information collected by the CFPB from
financial institutions is not protected by the same confidentiality
provisions that other financial regulators are required to provide.
Additionally, we must ensure parity between State bank supervisors and
other State regulatory agencies that oversee nonbanks at the State
level and make sure they are afforded the same protections. We need a
real solution to ensure that privileged information will not be
intentionally disclosed to any third party. H.R. 4014 would protect
that data that depository and non-depository institutions provide
during an oversight exam, therefore, enhancing the Bureau's supervision
process and giving financial institutions the much-needed certainty
that the information will be kept private.
Unlike current statutes regarding other Federal agencies assessing
relevant information, the Dodd-Frank Act failed to provide such
protections despite the CFPB's claim that they won't or wouldn't share
such information.
[[Page H1556]]
The simple truth is that if we don't pass H.R. 4014, the CFPB could
legally share privileged information with third parties. Absent this
specific congressional legislation, the courts have permitted this
practice of sharing in the cases of other Federal agencies. Although
the Bureau has said that they are prepared to take all reasonable and
appropriate steps to protect proprietary information, we cannot be
sure. Therefore, we must pass this bill to restrict them from doing so.
Even President Barack Obama's appointed director of the CFPB, Richard
Cordray, recently testified that this was an ``oversight'' and that he
would be ``supportive'' of a legislative solution to ensure privileged
information is not leaked to third parties through the CFPB. My bill is
that real legislative solution. This is a commonsense fix that will put
an end to the needless uncertainty and legal costs to both the CFPB and
to financial institutions.
Mr. Speaker, while I believe this issue must and will eventually be
addressed in the Dodd-Frank Act, this is a very important step. I urge
the swift adoption of this important legislation to restore genuine
accountability to the CFPB and to deliver a more efficient and
effective government for America's hardworking taxpayers.
I look forward to working with my Senate colleagues to see that this
omission in the Dodd-Frank Act is quickly rectified and sent to the
President for his signature.
Mr. AL GREEN of Texas. Mr. Speaker, I yield myself such time as I may
consume.
H.R. 4014 is a good piece of legislation, and it is designed to
protect proprietary information, which is exceedingly important in the
business world. This bill ensures that when an institution submits
confidential information to the CFPB, the information will remain
confidential. This bill is in line with existing law for other
financial regulators.
We have confirmed that the CFPB believes this fix to be acceptable.
The bill is identical to legislation introduced by Senate Banking
Committee Chairman Johnson and Ranking Member Shelby. This legislation
will give financial institutions legal certainty when turning over data
to the CFPB.
Mr. Speaker, current law states that a bank does not waive
confidentiality and, thereby, should not have to risk its disclosure of
information to other parties. These parties are sometimes engaged in
litigation against each other. This piece of legislation will assure a
party that its information given to the CFPB will not end up in the
hands of another party that may be engaged in litigation. This is but
one example. This bill is designed to protect proprietary information.
I want to thank my colleague for the outstanding job that he has done
in presenting this piece of legislation. I thank Mrs. Biggert for,
again, showing the bipartisanship that has helped us to bring this
legislation to the floor.
At this time, I will reserve the balance of my time.
Mrs. BIGGERT. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 4014, a bill to ensure that confidential,
private information collected by the Consumer Financial Protection
Bureau, or CFPB, remains confidential.
Introduced by my colleague from Michigan (Mr. Huizenga), this
legislation addresses a crucial oversight within the Dodd-Frank Act.
Under current law, many supervised institutions have expressed concern
that supplying privileged information to the CFPB at the government's
request could void attorney-client and work product privileges against
third parties. Even the new CFPB director, Richard Cordray, as was
talked about, has acknowledged constitutional concerns and indicated
that he would be supportive of a legislative solution. H.R. 4014 is
that solution.
Mr. Huizenga's bill makes it explicitly clear that providing
privileged material to the CFPB does not waive attorney-client or work
product privileges with respect to third parties. It also guarantees
that any privileged matter that the CFPB shares with other Federal
agencies will remain privileged.
This bill has earned nearly universal support from Republicans,
Democrats, regulated institutions, the regulator, Senators, and Members
of the House. On February 16, our House Financial Services Committee
passed this bill by voice vote.
Mr. Speaker, this bill should be on the President's desk in a matter
of weeks and not months. Chairman Johnson and Ranking Member Shelby of
the Senate Banking Committee have introduced an identical measure, S.
2099, which also awaits consideration. Passing this legislation today
marks an important milestone. It is the first time that both House and
Senate Members on both sides of the aisle are acknowledging and
correcting a serious flaw in the Dodd-Frank Act.
With that, I urge my colleagues to support H.R. 4014, and I commend
Mr. Huizenga for his hard work on this issue. I have no further
requests for time, if the gentleman would like to close.
Mr. AL GREEN of Texas. Mr. Speaker, I have no further requests for
time, and I will simply encourage my colleagues to support the
legislation.
I yield back the balance of my time.
Mrs. BIGGERT. Mr. Speaker, with that, I would, again, commend the
sponsor of this bill, Mr. Huizenga. And I thank Mr. Green for managing
this bill.
With that, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Illinois (Mrs. Biggert) that the House suspend the
rules and pass the bill, H.R. 4014.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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