House Financial Services Chairman Jeb Hensarling (R-Texas) is strengthening his attack on the Consumer Financial Protection Bureau and scaling back regulations on living wills and bank stress tests in new legislation expected to be introduced soon, according to a memo obtained by CNBC.
The new bill is more aggressive than the version of the Financial Choice Act passed by the committee last fall, with some of the biggest changes directed at the CFPB. The bill would turn the head of the consumer watchdog agency into a political appointee who can be dismissed at will rather than the director of an independent agency, the memo states. The previous bill called for a five-member commission to lead the CFPB.
According to the memo, the bill would strip the agency of its authority to bring cases against financial institutions under a provision known as unfair, deceptive and abusive practices and eliminate databases of consumer complaints.
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