[Congressional Record Volume 158, Number 50 (Tuesday, March 27, 2012)]
[Extensions of Remarks]
[Page E448]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    FDIA AMENDMENTS REGARDING DISCLOSURES TO THE BUREAU OF CONSUMER 
                          FINANCIAL PROTECTION

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                               speech of

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                         Monday, March 26, 2012

  Mrs. MALONEY. Mr. Speaker, I rise in support of H.R. 4014 to clarify 
that privileged information that the Consumer Financial Protection 
Bureau receives remains privileged throughout the supervision process.
  I would like to commend my colleague from Michigan, Mr. Huizenga for 
bringing this bill forward. This issue has come up now in several 
congressional hearings, in the Oversight Committee, in the Senate 
Banking Committee and also in the Financial Institutions Subcommittee 
on which I sit.
  Many institutions have expressed concern that there is no statutory 
protection of the attorney-client privilege for sensitive material that 
they turn over to the CFPB during the supervision process.
  Director Cordray has testified that he would support a statutory 
extension of the attorney-client privilege to documents that the CFPB 
receives. This is standard for all of the banking regulators and it 
should be true for the CFPB as well.
  It is critical that the process be an open exchange between the 
bureau and the entities it regulates. And that can only happen if the 
entities can trust that they aren't inadvertently waiving the privilege 
simply by turning documents over.
  I would note that the CFPB office of the General Counsel has 
indicated in a recent memo that it would ensure that the privilege was 
not waived, but I know that the entities involved in the CFPB's 
regulator process would prefer that to be codified, and I would agree.
  As it is currently drafted, the bill is identical to a bill 
introduced on a bipartisan basis in the other body. Both bills ensure 
that privilege is not waived when the CFPB receives sensitive 
information and when it shares that information with other agencies.
  I support this bill and urge my colleagues to support it as well.

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