WASHINGTON—President Obama has threatened to veto a bill that would establish a new Small Business Advisory Board to the CFPB.
The House has passed HR 1195, the “Bureau of Consumer Financial Protection Advisory Boards Act,” which would codify the CFPB’s existing advisory councils for community banks and credit unions (and rename them “advisory boards”) as well as establish the advisory board.
An amendment has also been added to the bill that would reduce funding for the CFPT, which is unpopular with banks and credit unions alike. One report said the amendment would reduce the maximum amount of funding the CFPB could request from the Federal Reserve by $9 million over each of the next five years.
After passage of the bill, the White House issued a Statement of Administrative Policy which stated that “if the President were presented with H.R. 1195 as currently amended, his senior advisors would recommend that he veto the bill.”
The statement indicated that the White House did not oppose the originally reported version of H.R. 1195, which was limited to establishing the advisory boards.
H.R. 1195 was submitted by Rep. Robert Pittenger (R-NC) and would also establish a permanent Community Bank Advisory Council and a Credit Union Advisory Council.