The U.S. Senate followed the House of Representatives in passing a bill that will protect the Consumer Financial Protection Bureau's legal privilege when it shares information on regulated banks and entities with other federal agencies. 

Law firm Ballard Spahr confirmed the news this week. The firm has been following the bill, H.R. 4014, since it effects what type of information the CFPB will be able to share on the banks and financial firms it regulates. 

Ballard Spahr in a newsletter said, "The bill has two main components. First, it adds the CFPB to the list of federal agencies that may share privileged information of a regulated entity with other federal agencies without waiver of any state or federal law privilege. Second, it identifies the CFPB as a regulator to whom a regulated entity may submit privileged information without waiving any state or federal law privilege."

But Ballard Spahr says HR 4014, which is now heading to the president's desk, still fails to address a key issue.

The firm wrote, "the legislation does not address the fundamental issue of whether the CFPB has the right to compel production of privileged documents in examinations. That unresolved issue will continue to surface if the CFPB insists on receiving privileged documents from its supervised entities."

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