Watchdog, Banks Push For Review Of CFPB Exam Process

Law360, New York (December 3, 2012, 8:18 PM EST) -- The Consumer Financial Protection Bureau's internal watchdog called on the agency Friday to reconsider its unprecedented policy of allowing enforcement attorneys to sit in on financial firms' periodic regulatory examinations, amid ongoing complaints from the banking industry that the controversial practice inhibits open communication with agency officials.

CFPB Ombudsman Wendy Kamenshine said in her annual report that banks and their representatives had raised repeated concerns that the presence of CFPB enforcement attorneys at regular examinations erected a “barrier to a free exchange during the examinations."...
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