Subscription Center  

News

Law360 quoted Venable of counsel Jonathan Pompan in a December 3, 2012 article on the Consumer Financial Protection Bureau's (CFPB) controversial policy of allowing enforcement attorneys to be present at financial firms' regulatory examinations. The banking industry complains that the presence of enforcement attorneys impedes open dialogue between banks and the CFPB.

Commenting on the issue, Pompan said "This is something that has been festering for a long time. The concerns on the part of supervised entities are very well-known." The CFPB defended the practice, in part, saying that it uses the examination process as a way to train enforcement attorneys. Pompan said "If the goal is training, having CFPB enforcement attorneys sitting in on examinations may be temporary. If the goal is a change to the way examinations are done, the policy is likely to be permanent and its effects long-lasting."

He added "Until training has run its course, it's very difficult to know whether in fact it is being used for training, because it is so new and the staff is so new." Pompan concluded, saying "Though, by all accounts, the CFPB's enforcement staff aren't trying to intimidate banks, it's certainly having that unintentional effect."