White House Threatens Veto If H.R. 2434 Undermines Dodd-Frank

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter, July 14, 2011.

The White House said President Obama would likely veto a House appropriations bill for fiscal year 2012 if it undermines the Dodd-Frank Act through funding limits or other restrictions.

In a Statement of Administration Policy regarding H.R. 2434, which makes appropriations for financial services and general government programs, the White House expressed strong opposition to a number of provisions in the bill.

Specifically the White House opposes changes to the Consumer Financial Protection Bureau’s funding structure, and limitations on its expenditures, saying the changes would compromise the CFPB’s independence. According to H.R. 2434 the Federal Reserve Board cannot transfer more than $200 million to the CFPB, which compares to the $329 million the CFPB estimates it will need. H.R. 2434 would also place the agency under the annual appropriations process.

The White House said H.R. 2434 would not only curtail hiring and start-up investments already underway, but would impede supervision, and limit the bureau’s consumer response services.

Treasury Assistant Secretary Mary Miller told the SIFMA Regulatory Reform Summit that scaling back or repealing major parts of Dodd-Frank, or not providing regulators with the necessary funds, “will leave our economy exposed to a cycle of collapses and crises, with potentially devastating repercussions for businesses, for financial markets, and for all Americans.”

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