WASHINGTON–At the same time the director of the CFPB was testifying before Congress, a draft fiscal year 2017 budget from the U.S. House Budget Committee was being marked up that included a measure that would eliminate the agency.
The draft also contained a measure that would prohibit Fannie Mae and Freddie Mac guarantee fees from being used to offset other funding and prohibit Federal Reserve dividends from going to banks.
In addition to repealing the CFPB, the financial services section of the draft budget also calls for:
- Repealing the FDIC’s authority to access taxpayer dollars to bail out large, “systemically significant” financial institutions. In place, it would allow for a system that puts the burden on managers, shareholders, and creditors.
- The eventual elimination of Fannie Mae and Freddie Mac by calling for the privatization of their operations and an end to their government guarantee and taxpayer subsidies.
- Incorporating fair value principles to better gain an understanding of the Federal Housing Authority’s financial health.
- A repeal of the “worst provisions” in the Dodd-Frank Act.