This week’s vendor management news is dominated by the change in the leadership at the CFPB, UDAAP action and a new head at the OCC. Check out more of the important third party risk related news for the week of November 27 below.
Articles From Week of November 27 to Check Out
Regulators still have not held Wells accountable for breadth of repeated scandals: Read here
Well written perspective and advice on how to react to CFPB director departure – and the state of flux: Read here
Cordray accelerates his departure, announcing an end of day departure, and names his own successor: Read here
Trump names a successor as well – setting up a legal battle: Read here
Washington Post analysis of the CFPB dilemma: Read here
Alan Kaplinsky Chair, Consumer Financial Services Group, Ballard Spahr, LLP:
I want to update everyone on what transpired today at the CFPB. Cordray appointed Leandra English as Deputy Director (this was one of several appointments that he made today). He then announced (by sending a letter to his staff and to President Trump) that he would be resigning as director at midnight tonight. He stated in his letter to the staff, but interestingly not in his letter to President Trump, that newly-appointed Deputy Director English would automatically become Acting Director under the language in the Dodd-Frank Act saying that the deputy director becomes the acting director in the "absence or or unavailability of the director. Last week, the White House announced that it would be appointing Mick Mulvaney, the current director of OMB, as the acting director of the CFPB. Presumably, President Trump will now officially appoint Mulvaney as Acting Director under the Federal Vacancies Reform Act. This will likely result in a lawsuit to determine who is entitled to be the acting director. I believe that Trump will ultimately win this battle. However, in the meantime, there will be a cloud of uncertainty over any actions taken by the CFPB. We will be blogging about these important developments on our blog, CFPBMonitor, on Monday.
This isn’t third party related and this isn’t even about a US based bank… so why should we care? It’s a good reminder that the NYDFS will seek to assert authority over any financial institution located in NY. That’s important since the NYDFS cybersecurity rules are so tough – will be an area of continued enforcement: Read here
New head of OCC sworn in on Nov 27, 2017, Joseph Otting is a former bank executive so we can assume he will be quite regulatory reform friendly: Read here
New CFPB appointed head Mulvaney immediately begins changes at the agency, freezing hiring and issuance of new rules: Read here
The impact of the growing vacancies in key positions at the Federal Reserve – near crisis level: Read here
Ever wonder what all of the OCC enforcement actions mean? Well, wait no longer, the OCC publishes a new guide: Read here
More bad news for Wells Fargo – another systemic case of misleading practices uncovered: Read here
Detailed legal analysis of the current CFPB situation – lengthy but well worth reading: Read here
American Banker on what the CFPB really means in terms of this recent twist of events: Read here
Proposed regulatory reform – bipartisan support! See anything that even remotely mentions day to day compliance or vendor management? Nope, you don’t – will take quite a while for it to trickle down to meaningful day to day reform, even if passed: Read here
Ballard Spahr webinar presentation on the rejected CFPB arbitration rule and its impact on UDAAP: Read here
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