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An article recently published by the Brookings Institution as an op-ed entitled “A few small banks have become overdraft giants” serves as a warning that bank overdraft practices are likely to face increased attention from the “new CFPB.”
Authored by Aaron Klein, a Brookings Senior Fellow, the article reports that overdraft revenues accounted for more than half of the net income of six small banks in 2020 and criticizes regulators for “tolerat[ing] banks that are mostly or entirely dependent on overdraft fees for profitability.” The author labels banks that are heavily reliant on overdrafts for their profits “a combination of payday lenders and check cashers.” He calls on bank regulators to “crack down on these institutions that are operating in neither a safe nor sound manner” and “to consider whether the overdraft product is really a loan, not a fee.” Mr. Klein also calls on the CFPB “t
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On December 29, 2020, the U.S. Court of Appeals for the Ninth Circuit issued its decision on remand from the Supreme Court, following the Supreme Court’s holding that the CFPB’s structure was unconstitutional because the leadership of the agency was placed in a single Director who could only be removed for cause. The Ninth Circuit affirmed the district court opinion enforcing a civil investigative demand (CID) issued by the CFPB, finding that after the Supreme Court’s order, the current CFPB Director, Kathleen Kraninger, had validly ratified the CID.
general counsel. it s acting director mulvaney in residence at the cfpb. he is listed as acting director on the website of his begun work. november 25, the cfpb s general counsel advised all bureau personnel to act consistently with the understanding that director mulvaney is the acting director of the cfpb. in my mind there s no doubt mr. mulvaney is quickly running the agency. actually the cfpb s current general counsel agreed. ms. english is suing on her own behalf. with english emailing officials, mulvaney fired off two memos apologizing for the confusion and disruption and adding please disregard any emails sent by or instructions you received from ms. english when she has purporting to act as the acting director. mulvaney has instituted what lawyers call a soft freeze on hiring while this management issue is resolved. the washington examiner has