CFPB to unleash bank examiners on Dodd-Frank anniversary
More than 100 Consumer Financial Protection Bureau staff members are ready to contact the nation's large banks when the agency's regulatory authority kicks in next week. As outlined in the Dodd-Frank Act, the CFPB will take over its prescribed role of supervising financial firms that serve consumers on July 21. CFPB examiners will spend the first few weeks studying the banks' structures, operations, risks and business strategies. Once the CFPB coordinates its regulatory efforts with those of federal and state agencies, it will begin its first round of bank examinations. The agency is overseeing banks that have at least $10 billion in assets. "This process will begin remotely in most instances, and CFPB examiners will then begin on-site reviews at the supervised institutions to continue their work," the CFPB said in a statement Tuesday. "The CPFB will provide additional information via letter to the 111 institutions, and will conduct informational round tables starting in early August." A CFPB examination manual will be posted on the bureau's website, so banking professionals can submit their feedback on the process. The Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed a year ago this month, created the CFPB to oversee financial institutions that offer consumer financial products to Americans. Once its fully established, the CFPB will have hundreds of experienced banking examiners working in satellite offices out of New York, Chicago, San Francisco and Washington D.C. The CFPB said, "Institutions will generally be advised of upcoming examinations and receive status updates throughout the supervision process." Write to Kerri Panchuk.