January 16, 2013

Associated Press quotes Suzanne Garwood and Jonathan Pompan on CFPB process complaints

2 min

Venable partners Suzanne Garwood and Jonathan Pompan were quoted by the Associated Press on January 15, 2013 on complaints by bankers and financial industry leaders about the Consumer Financial Protection Bureau’s (CFPB) slow and inefficient oversight process which has slowed lending and made it difficult to do business. Some in the industry claim the CFPB’s team is understaffed, inexperienced and takes months to give banks the results of audits. Multiple publications reprinted the Associated Press article including the Washington Post and New York Times.

Commenting on the complaints within the banking industry, Garwood noted that other banking regulators usually offer feedback immediately after an examination, however with the CFPB “you have your exit interview, and things could be bad or they could be good,” but it is unclear until the final report is issued. Garwood also spoke on the inexperience of some regulators and the strained relationships it is creating saying, “It’s unfortunate that banks are really kind of the training ground for examiners, but hopefully they are learning the nuances of the industry.”

“The CFPB went full-throttle into the field, and in some cases has yet to determine what it would view as problematic,” added Pompan on a cause of the strained relationships. “You’ve got folks who are looking at organizations for the first time and making potentially very significant findings” that could cost the banking industry millions of dollars.