99–006 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 112–89 

CONSUMER FINANCIAL PROTECTION SAFETY AND 

SOUNDNESS IMPROVEMENT ACT OF 2011 

MAY 25, 2011.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. BACHUS, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 1315] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 1315) to amend the Dodd-Frank Wall Street Reform and 

Consumer Protection Act to strengthen the review authority of the 

Financial Stability Oversight Council of regulations issued by the 

Bureau of Consumer Financial Protection, having considered the 

same, report favorably thereon with an amendment and recommend that the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Consumer Financial Protection Safety and Soundness Improvement Act of 2011’’. 

SEC. 2. COUNCIL VOTING PROCEDURE. 

Section 1023(c)(3)(A) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended— 

(1) by striking ‘‘2⁄3’’ and inserting ‘‘a majority’’; and 

(2) by inserting before the period the following: ‘‘, excluding the Director of 

the Bureau’’. 

SEC. 3. REVIEW AUTHORITY OF THE COUNCIL. 

Section 1023 of the Dodd-Frank Wall Street Reform and Consumer Protection Act 

is amended— 

(1) in subsection (a)— 


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(A) by striking ‘‘may’’ and inserting ‘‘shall’’; and 

(B) by striking ‘‘regulation or provision would put the safety and soundness of the United States banking system or the stability of the financial 

system of the United States at risk’’ and inserting ‘‘regulation which is the 

subject of the petition is inconsistent with the safe and sound operations 

of United States financial institutions’’; and 

(2) in subsection (c)— 

(A) in paragraph (3)(B)(ii), by striking ‘‘would put the safety and soundness of the United States banking system or the stability of the financial 

system of the United States at risk’’ and inserting ‘‘is inconsistent with the 

safe and sound operations of United States financial institutions’’; 

(B) in paragraph (4)— 

(i) by striking subparagraph (B); and 

(ii) by redesignating subparagraph (C) as subparagraph (B); 

(C) by striking paragraph (5); 

(D) by redesignating paragraphs (6), (7), and (8) as paragraphs (5), (6), 

and (7), respectively; and 

(E) by adding at the end the following new paragraph: 

‘‘(8) PUBLIC MEETINGS.—Any time the Council meets pursuant to this section 

to decide whether to issue a stay of, or set aside, any regulation, every portion 

of such meeting shall be open to public observation.’’. 

PURPOSE AND SUMMARY

H.R. 1315, the Consumer Financial Protection Safety and Soundness Improvement Act of 2011, amends Section 1023 of the DoddFrank Wall Street Reform and Consumer Protection Act (DoddFrank Act) (P.L. 111–203) to streamline the Financial Stability 

Oversight Council’s (FSOC) review and oversight of Consumer Financial Protection Bureau (CFPB) rules and regulations that may 

undermine the safety and soundness of U.S. financial institutions. 

The bill makes four major changes: (1) it lowers the threshold required to set aside regulations from a two-thirds vote of the FSOC’s 

voting membership to a simple majority, excluding the CFPB; (2) 

it clarifies that the FSOC must set aside any CFPB regulation that 

is inconsistent with the safe and sound operations of U.S. financial 

institutions; (3) it eliminates the 45-day time limit for the FSOC 

to review and vote on regulations; and (4) it requires that all FSOC 

meetings be open to the public whenever it decides to stay or set 

aside a CFPB regulation. 

BACKGROUND AND NEED FOR LEGISLATION

Rep. Sean Duffy introduced H.R. 1315 to enhance FSOC oversight and review of regulations proposed by the CFPB. Title I of 

the Dodd-Frank Act establishes the FSOC, and Section 112(a) 

charges the FSOC with identifying ‘‘risks to the financial stability 

of the United States that could arise from the material financial 

distress or failure, or ongoing activities, of large, interconnected 

bank holding companies or nonbank financial companies, or that 

could arise outside the financial services marketplace.’’ Ten voting 

members and five non-voting members comprise the FSOC. The ten 

voting members are the heads of nine federal financial regulatory 

agencies, including the CFPB, and an independent member with 

insurance expertise. In addition to the CFPB, the other agencies 

represented are the Department of the Treasury, the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Securities and Exchange Commission (SEC), the Federal Deposit Insurance Corporation (FDIC), the Commodity Futures Trading ComVerDate Mar 15 2010 13:21 May 26, 2011 Jkt 099006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR089.XXX HR089

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mission (CFTC), the Federal Housing Finance Agency (FHFA), and 

the National Credit Union Administration (NCUA). 

Section 1023 of the Dodd-Frank Act allows the FSOC to review, 

stay, and block CFPB regulations if two-thirds of the FSOC membership ‘‘decides . . . that the regulation or provision would put the 

safety and soundness of the United States banking system or the 

stability of the financial system of the United States at risk.’’ The 

FSOC chair may stay the effectiveness of a regulation at the request of a single FSOC member for 90 days. If the FSOC chair does 

not stay the rule, the FSOC must vote within 45 days of the date 

the petition is filed. If the FSOC stays the rule, the vote must be 

taken before the stay elapses. If a vote is not taken within these 

time frames, the petition is deemed to have been dismissed. 

H.R. 1315 reduces the vote required to set aside CFPB regulations from two-thirds of the FSOC’s voting membership to a simple 

majority, excluding the Director of the CFPB. Under the DoddFrank Act, even if six voting members of the FSOC believe that a 

CFPB rule could undermine the safety and soundness of U.S. financial institutions, if just two others side with the CFPB, the rule 

would become effective. Given that the safety and soundness of 

American financial institutions are at risk, a majority vote makes 

more sense: it lets the CFPB set rules that protect consumers; it 

sets an appropriate threshold for overturning a rule; and it also allows the FSOC to reject misguided rules that could destabilize U.S. 

financial institutions. 

The bill also clarifies that the FSOC must set aside any CFPB 

regulation that is inconsistent with the safe and sound operations 

of U.S. financial institutions. The current standard in Section 1023 

for overturning a CFPB rule is extremely high, as it requires a proposed CFPB rule to ‘‘put the safety and soundness of the United 

States banking system or the stability of the financial system of 

the United States at risk’’ in order to be overturned. Accordingly, 

a rule that severely threatens the viability of smaller financial institutions but does not put the entire financial system at risk would 

not meet the standard. The change proposed in H.R. 1315 ensures 

that a CFPB rule does not impair the safety and soundness of a 

U.S. financial institution, regardless of its size. 

H.R. 1315 also removes any time restrictions for FSOC reviews. 

To give the FSOC the time necessary to fully consider the consequences of CFPB regulations on the safe and sound operation of 

the banking system—which may not be immediately apparent—the 

bill removes the time limits associated with this process. 

HEARINGS

The Subcommittee on Financial Institutions and Consumer Credit held a hearing on March 16, 2011 entitled ‘‘Oversight of the Consumer Financial Protection Bureau.’’ There was one witness: 

• Ms. Elizabeth Warren, Special Advisor to the Secretary of the 

Treasury for the Consumer Financial Protection Bureau, Department of the Treasury 

The Subcommittee on Financial Institutions and Consumer Credit held a hearing on April 6, 2011 entitled, ‘‘Legislative Proposals 

to Improve the Structure of the Consumer Financial Protection Bureau.’’ The following witnesses testified: 


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• Ms. Leslie R. Andersen, President and Chief Executive Officer, 

Bank of Bennington on behalf of the American Bankers Association • Ms. Lynette W. Smith, President and Chief Executive Officer, 

Washington Gas Light FCU on behalf of the National Association 

of Federal Credit Unions • Mr. Jess Sharp, Executive Director, Center for Capital Markets 

Competitiveness, U.S. Chamber of Commerce 

• Mr. Hilary Shelton, Director, NAACP Washington Bureau and 

Senior VP for Advocacy and Policy, NAACP 

• Mr. Noah H. Wilcox, President and Chief Executive Officer, 

Grand Rapids State Bank on behalf of the Independent Community 

Bankers of America 

• Mr. Rod Staatz, President and Chief Executive Officer, SECU 

of Maryland on behalf of the Credit Union National Association 

• Mr. Richard Hunt, President, Consumer Bankers Association 

• Prof. Adam J. Levitin, Georgetown University Law Center 

COMMITTEE CONSIDERATION

The Subcommittee on Financial Institutions and Consumer Credit met in open session on May 4, 2011 and ordered H.R. 1315, Consumer Financial Protection Safety and Soundness Improvement 

Act of 2011, as amended, favorably reported to the Full Committee 

by a record vote of 13 yeas and 7 nays (Record vote no. FI–7). 

The Committee on Financial Services met in open session on 

May 12, 2011 and ordered H.R. 1315, the Consumer Financial Protection Safety and Soundness Improvement Act of 2011, as amended, favorably reported to the House by a record vote of 35 yeas and 

22 nays (Record vote no. FC–36). 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. A motion by Chairman Bachus to report the bill, as amended, to the House with a 

favorable recommendation was agreed to by a record vote of 35 

yeas and 22 nays (Record vote no. FC–36). The names of Members 

voting for and against follow: 

RECORD VOTE NO. FC–36 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... X ........... ............. Mr. Frank (MA) ..................... ........... X .............

Mr. Hensarling ...................... X ........... ............. Ms. Waters ........................... ........... X .............

Mr. King (NY) ........................ X ........... ............. Mrs. Maloney ........................ ........... X .............

Mr. Royce .............................. X ........... ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. X ........... ............. Ms. Vela ́zquez ...................... ........... X .............

Mr. Paul ................................ ........... ........... ............. Mr. Watt ............................... ........... X .............

Mr. Manzullo ......................... X ........... ............. Mr. Ackerman ....................... ........... X .............

Mr. Jones ............................... X ........... ............. Mr. Sherman ........................ ........... X .............

Mrs. Biggert .......................... X ........... ............. Mr. Meeks ............................. ........... X .............

Mr. Gary G. Miller (CA) ......... X ........... ............. Mr. Capuano ........................ ........... X .............

Mrs. Capito ........................... X ........... ............. Mr. Hinojosa ......................... ........... X .............

Mr. Garrett ............................ X ........... ............. Mr. Clay ................................ ........... X .............

Mr. Neugebauer .................... X ........... ............. Mrs. McCarthy (NY) .............. ........... ........... .............

Mr. McHenry .......................... X ........... ............. Mr. Baca .............................. ........... X .............

Mr. Campbell ........................ X ........... ............. Mr. Lynch ............................. ........... X .............

Mrs. Bachmann .................... X ........... ............. Mr. Miller (NC) ..................... ........... X .............

Mr. McCotter ......................... X ........... ............. Mr. David Scott (GA) ............ ........... X .............


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RECORD VOTE NO. FC–36—Continued 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. McCarthy (CA) ................ X ........... ............. Mr. Al Green (TX) ................. ........... X .............

Mr. Pearce ............................. X ........... ............. Mr. Cleaver ........................... ........... X .............

Mr. Posey .............................. X ........... ............. Ms. Moore ............................. ........... X .............

Mr. Fitzpatrick ....................... X ........... ............. Mr. Ellison ............................ ........... ........... .............

Mr. Westmoreland ................. X ........... ............. Mr. Perlmutter ...................... X ........... .............

Mr. Luetkemeyer .................... X ........... ............. Mr. Donnelly ......................... ........... X .............

Mr. Huizenga ......................... X ........... ............. Mr. Carson ........................... X ........... .............

Mr. Duffy ............................... X ........... ............. Mr. Himes ............................. ........... X .............

Ms. Hayworth ........................ X ........... ............. Mr. Peters ............................. ........... X .............

Mr. Renacci ........................... X ........... ............. Mr. Carney ............................ ........... X .............

Mr. Hurt ................................ X ........... .............

Mr. Dold ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Mr. Grimm ............................. X ........... .............

Mr. Canseco .......................... X ........... .............

Mr. Stivers ............................ X ........... .............

Mr. Fincher ............................ X ........... .............

During consideration of H.R. 1315, the following amendments 

and motion were considered: 

1. An amendment offered by Ms. Waters, no. 1, to provide that 

the FSOC can overturn a regulation with a 2/3 vote if a majority 

of the FSOC determines that the primary purpose of a regulation 

is to protect members of the armed services, was not agreed to by 

a record vote of 25 yeas and 32 nays (Record vote no. FC–33). 

RECORD VOTE NO. FC–33 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... ........... X ............. Mr. Frank (MA) ..................... X ........... .............

Mr. Hensarling ...................... ........... X ............. Ms. Waters ........................... X ........... .............

Mr. King (NY) ........................ ........... X ............. Mrs. Maloney ........................ X ........... .............

Mr. Royce .............................. ........... X ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. ........... X ............. Ms. Vela ́zquez ...................... X ........... .............

Mr. Paul ................................ ........... ........... ............. Mr. Watt ............................... X ........... .............

Mr. Manzullo ......................... ........... X ............. Mr. Ackerman ....................... X ........... .............

Mr. Jones ............................... X ........... ............. Mr. Sherman ........................ X ........... .............

Mrs. Biggert .......................... ........... X ............. Mr. Meeks ............................. X ........... .............

Mr. Gary G. Miller (CA) ......... ........... X ............. Mr. Capuano ........................ X ........... .............

Mrs. Capito ........................... ........... X ............. Mr. Hinojosa ......................... X ........... .............

Mr. Garrett ............................ ........... X ............. Mr. Clay ................................ X ........... .............

Mr. Neugebauer .................... ........... X ............. Mrs. McCarthy (NY) .............. ........... ........... .............

Mr. McHenry .......................... ........... X ............. Mr. Baca .............................. X ........... .............

Mr. Campbell ........................ ........... X ............. Mr. Lynch ............................. X ........... .............

Mrs. Bachmann .................... ........... X ............. Mr. Miller (NC) ..................... X ........... .............

Mr. McCotter ......................... ........... X ............. Mr. David Scott (GA) ............ X ........... .............

Mr. McCarthy (CA) ................ ........... X ............. Mr. Al Green (TX) ................. X ........... .............

Mr. Pearce ............................. ........... X ............. Mr. Cleaver ........................... X ........... .............

Mr. Posey .............................. ........... X ............. Ms. Moore ............................. X ........... .............

Mr. Fitzpatrick ....................... ........... X ............. Mr. Ellison ............................ ........... ........... .............

Mr. Westmoreland ................. ........... X ............. Mr. Perlmutter ...................... X ........... .............

Mr. Luetkemeyer .................... ........... X ............. Mr. Donnelly ......................... X ........... .............

Mr. Huizenga ......................... ........... X ............. Mr. Carson ........................... X ........... .............

Mr. Duffy ............................... ........... X ............. Mr. Himes ............................. X ........... .............

Ms. Hayworth ........................ ........... X ............. Mr. Peters ............................. X ........... .............

Mr. Renacci ........................... ........... X ............. Mr. Carney ............................ X ........... .............

Mr. Hurt ................................ ........... X .............

Mr. Dold ................................ ........... X .............

Mr. Schweikert ...................... ........... X .............

Mr. Grimm ............................. ........... X .............

Mr. Canseco .......................... ........... X .............

Mr. Stivers ............................ ........... X .............


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RECORD VOTE NO. FC–33—Continued 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Fincher ............................ ........... X .............

2. A motion offered by Mr. Hensarling, to table Mr. Miller’s appeal of the ruling of the Chair, was agreed to by a record vote of 

10 yeas and 7 nays (Record vote no. FC–25). 

RECORD VOTE NO. FC–25 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... X ........... ............. Mr. Frank (MA) ..................... ........... X .............

Mr. Hensarling ...................... X ........... ............. Ms. Waters ........................... ........... X .............

Mr. King (NY) ........................ ........... ........... ............. Mrs. Maloney ........................ ........... X .............

Mr. Royce .............................. ........... ........... ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. ........... ........... ............. Ms. Vela ́zquez ...................... ........... ........... .............

Mr. Paul ................................ ........... ........... ............. Mr. Watt ............................... ........... X .............

Mr. Manzullo ......................... ........... ........... ............. Mr. Ackerman ....................... ........... ........... .............

Mr. Jones ............................... ........... ........... ............. Mr. Sherman ........................ ........... X .............

Mrs. Biggert .......................... X ........... ............. Mr. Meeks ............................. ........... ........... .............

Mr. Gary G. Miller (CA) ......... ........... ........... ............. Mr. Capuano ........................ ........... ........... .............

Mrs. Capito ........................... ........... ........... ............. Mr. Hinojosa ......................... ........... ........... .............

Mr. Garrett ............................ X ........... ............. Mr. Clay ................................ ........... ........... .............

Mr. Neugebauer .................... X ........... ............. Mrs. McCarthy (NY) .............. ........... ........... .............

Mr. McHenry .......................... ........... ........... ............. Mr. Baca .............................. ........... ........... .............

Mr. Campbell ........................ ........... ........... ............. Mr. Lynch ............................. ........... ........... .............

Mrs. Bachmann .................... ........... ........... ............. Mr. Miller (NC) ..................... ........... X .............

Mr. McCotter ......................... X ........... ............. Mr. David Scott (GA) ............ ........... ........... .............

Mr. McCarthy (CA) ................ ........... ........... ............. Mr. Al Green (TX) ................. ........... ........... .............

Mr. Pearce ............................. ........... ........... ............. Mr. Cleaver ........................... ........... ........... .............

Mr. Posey .............................. ........... ........... ............. Ms. Moore ............................. ........... ........... .............

Mr. Fitzpatrick ....................... ........... ........... ............. Mr. Ellison ............................ ........... X .............

Mr. Westmoreland ................. ........... ........... ............. Mr. Perlmutter ...................... ........... ........... .............

Mr. Luetkemeyer .................... ........... ........... ............. Mr. Donnelly ......................... ........... ........... .............

Mr. Huizenga ......................... ........... ........... ............. Mr. Carson ........................... ........... ........... .............

Mr. Duffy ............................... X ........... ............. Mr. Himes ............................. ........... ........... .............

Ms. Hayworth ........................ ........... ........... ............. Mr. Peters ............................. ........... ........... .............

Mr. Renacci ........................... ........... ........... ............. Mr. Carney ............................ ........... ........... .............

Mr. Hurt ................................ X ........... .............

Mr. Dold ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Mr. Grimm ............................. ........... ........... .............

Mr. Canseco .......................... ........... ........... .............

Mr. Stivers ............................ ........... ........... .............

Mr. Fincher ............................ ........... ........... .............

3. An amendment offered by Mr. Miller of NC, no. 4, to require 

that when an insured depository institution submits comments to 

a regulator and when the regulator determines that the rule would 

affect the safety and soundness of the institution, the regulator 

shall conduct a series of investigations into the institution’s management and business decisions to determine whether any alleged 

safety and soundness concerns are actually attributable to the proposed rule or to other factors, and to require all regulators to consider the financial safety and soundness of the consumers who will 

be affected by the proposed rule when determining how to proceed, 

was not agreed to by a record vote of 24 yeas and 33 nays (Record 

vote no. FC–34). 


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RECORD VOTE NO. FC–34 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ................................. ........... X ............. Mr. Frank (MA) ................ X ........... .............

Mr. Hensarling ........................... ........... X ............. Ms. Waters ...................... X ........... .............

Mr. King (NY) ............................. ........... X ............. Mrs. Maloney ................... X ........... .............

Mr. Royce ................................... ........... X ............. Mr. Gutierrez ................... ........... ........... .............

Mr. Lucas ................................... ........... X ............. Ms. Vela ́zquez ................. X 

Mr. Paul ..................................... ........... ........... ............. Mr. Watt .......................... X ........... .............

Mr. Manzullo .............................. ........... X ............. Mr. Ackerman .................. X ........... .............

Mr. Jones .................................... ........... X ............. Mr. Sherman ................... X ........... .............

Mrs. Biggert ............................... ........... X ............. Mr. Meeks ....................... X ........... .............

Mr. Gary G. Miller (CA) .............. ........... X ............. Mr. Capuano ................... X ........... .............

Mrs. Capito ................................ ........... X ............. Mr. Hinojosa .................... X ........... .............

Mr. Garrett ................................. ........... X ............. Mr. Clay .......................... X ........... .............

Mr. Neugebauer .......................... ........... X ............. Mrs. McCarthy (NY) ........ ........... ........... .............

Mr. McHenry ............................... ........... X ............. Mr. Baca ......................... X ........... .............

Mr. Campbell ............................. ........... X ............. Mr. Lynch ........................ X ........... .............

Mrs. Bachmann .......................... ........... X ............. Mr. Miller (NC) ................ X ........... .............

Mr. McCotter .............................. ........... X ............. Mr. David Scott (GA) ...... X ........... .............

Mr. McCarthy (CA) ..................... ........... X ............. Mr. Al Green (TX) ............ X ........... .............

Mr. Pearce .................................. ........... X ............. Mr. Cleaver ..................... X ........... .............

Mr. Posey .................................... ........... X ............. Ms. Moore ....................... X ........... .............

Mr. Fitzpatrick ............................ ........... X ............. Mr. Ellison ....................... ........... ........... .............

Mr. Westmoreland ...................... ........... X ............. Mr. Perlmutter ................. X ........... .............

Mr. Luetkemeyer ......................... ........... X ............. Mr. Donnelly .................... X ........... .............

Mr. Huizenga .............................. ........... X ............. Mr. Carson ...................... X ........... .............

Mr. Duffy .................................... ........... X ............. Mr. Himes ....................... X ........... .............

Ms. Hayworth ............................. ........... X ............. Mr. Peters ....................... X ........... .............

Mr. Renacci ................................ ........... X ............. Mr. Carney ...................... X ........... .............

Mr. Hurt ...................................... ........... X .............

Mr. Dold ..................................... ........... X .............

Mr. Schweikert ........................... ........... X .............

Mr. Grimm .................................. ........... X .............

Mr. Canseco ............................... ........... X .............

Mr. Stivers .................................. ........... X .............

Mr. Fincher ................................. ........... X .............

4. An amendment offered by Ms. Waters, no. 5, to provide that 

the FSOC can overturn a regulation with a 2/3 vote if a majority 

of the FSOC determines that the primary purpose of a regulation 

is to protect older Americans, was not agreed to by a record vote 

of 25 yeas and 32 nays (Record vote no. FC–35). 

RECORD VOTE NO. FC–35 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Bachus ........................... ........... X ............. Mr. Frank (MA) ..................... X ........... .............

Mr. Hensarling ...................... ........... X ............. Ms. Waters ........................... X ........... .............

Mr. King (NY) ........................ ........... X ............. Mrs. Maloney ........................ X ........... .............

Mr. Royce .............................. ........... X ............. Mr. Gutierrez ........................ ........... ........... .............

Mr. Lucas .............................. ........... X ............. Ms. Vela ́zquez ...................... X 

Mr. Paul ................................ ........... ........... ............. Mr. Watt ............................... X ........... .............

Mr. Manzullo ......................... ........... X ............. Mr. Ackerman ....................... X ........... .............

Mr. Jones ............................... X ........... ............. Mr. Sherman ........................ X ........... .............

Mrs. Biggert .......................... ........... X ............. Mr. Meeks ............................. X ........... .............

Mr. Gary G. Miller (CA) ......... ........... X ............. Mr. Capuano ........................ X ........... .............

Mrs. Capito ........................... ........... X ............. Mr. Hinojosa ......................... X ........... .............

Mr. Garrett ............................ ........... X ............. Mr. Clay ................................ X ........... .............

Mr. Neugebauer .................... ........... X ............. Mrs. McCarthy (NY) .............. ........... ........... .............

Mr. McHenry .......................... ........... X ............. Mr. Baca .............................. X ........... .............

Mr. Campbell ........................ ........... X ............. Mr. Lynch ............................. X ........... .............

Mrs. Bachmann .................... ........... X ............. Mr. Miller (NC) ..................... X ........... .............

Mr. McCotter ......................... ........... X ............. Mr. David Scott (GA) ............ X ........... .............

Mr. McCarthy (CA) ................ ........... X ............. Mr. Al Green (TX) ................. X ........... .............

Mr. Pearce ............................. ........... X ............. Mr. Cleaver ........................... X ........... .............


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RECORD VOTE NO. FC–35—Continued 

Representative Aye Nay Present Representative Aye Nay Present 

Mr. Posey .............................. ........... X ............. Ms. Moore ............................. X ........... .............

Mr. Fitzpatrick ....................... ........... X ............. Mr. Ellison ............................ ........... ........... .............

Mr. Westmoreland ................. ........... X ............. Mr. Perlmutter ...................... X ........... .............

Mr. Luetkemeyer .................... ........... X ............. Mr. Donnelly ......................... X ........... .............

Mr. Huizenga ......................... ........... X ............. Mr. Carson ........................... X ........... .............

Mr. Duffy ............................... ........... X ............. Mr. Himes ............................. X ........... .............

Ms. Hayworth ........................ ........... X ............. Mr. Peters ............................. X ........... .............

Mr. Renacci ........................... ........... X ............. Mr. Carney ............................ X ........... .............

Mr. Hurt ................................ ........... X .............

Mr. Dold ................................ ........... X .............

Mr. Schweikert ...................... ........... X .............

Mr. Grimm ............................. ........... X .............

Mr. Canseco .......................... ........... X .............

Mr. Stivers ............................ ........... X .............

Mr. Fincher ............................ ........... X .............

The following amendments and motion were also considered by 

the Committee: 

1. An amendment offered by Mr. Miller of North Carolina, no. 2, 

to require that when an insured depository institution submits a 

comment to the CFPB it shall also provide appropriate Federal 

banking agencies with a report stating how the institution expects 

the proposed rule to affect the safety and soundness of the institution and a report detailing how a proposed rule affects the profitability of the institution, was not germane. 

2. An amendment offered by Mrs. Maloney, no. 3, to prevent the 

FSOC from considering profitability when determining if a proposed rule affects the safe and sound operations of the financial institution, was offered and withdrawn. 

3. A motion offered by Mrs. Biggert, to move the previous question on H.R. 1315 was agreed to by voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has held a hearing and made 

findings that are reflected in this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee establishes the following performance related goals and objectives for this legislation: 

The purpose of H.R. 1315 is to enhance FSOC oversight and review of regulations proposed by the CFPB. The bill achieves its 

purpose by making three changes to the Dodd-Frank Act. Firstly, 

H.R. 1315 changes the voting scheme required to set aside CFPB 

regulations from two-thirds of the FSOC’s voting membership to a 

simple majority, excluding the Director of the CFPB. Secondly, the 

bill clarifies that the FSOC must set aside any CFPB regulation 

that is inconsistent with the safe and sound operations of U.S. financial institutions. Thirdly, H.R. 1315 removes any time restrictions imposed on the FSOC in reviewing CFPB regulations on the 

safe and sound operation of the banking system. 


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NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

MAY 20, 2011. 

Hon. SPENCER BACHUS, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1315, the Consumer Financial Protection Safety and Soundness Improvement Act of 2011. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 1315—Consumer Financial Protection Safety and Soundness 

Improvement Act of 2011 

H.R. 1315 would amend the statute that authorizes the Financial 

Stability Oversight Council (FSOC) to delay implementation or set 

aside final regulations developed by the Consumer Financial Protection Bureau (CFPB). The FSOC may, under current law, stay 

the effective date of a regulation or set aside a regulation developed 

by the CFPB upon a vote of two-thirds of the members affirming 

that the regulation would put the safety and soundness of the 

United States banking system or the stability of the United States 

financial system at risk. H.R. 1315 would require the FSOC to take 

such action if a majority of the members affirm that a regulation 

is inconsistent with the safe and sound operations of domestic financial institutions. 

Based on information from the Treasury, CBO estimates that enacting H.R. 1315 would not significantly affect direct spending and 

would not affect revenues. Because enacting H.R. 1315 could affect 

direct spending, pay-as-you-go procedures apply. 

CBO expects that the number of regulations that could come to 

a vote by the FSOC would not change significantly as a result of 

the bill; further, changing the margin of votes to approve a stay or 


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10 

set aside a regulation would probably not have a significant effect 

on the cost of operating the FSOC or the CFPB. 

H.R. 1315 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Susan Willie. The estimate was approved by Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 1315 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This Act may be cited as the ‘‘Consumer Financial Protection 

Safety and Soundness Improvement Act of 2011.’’ 

Section 2. Council voting procedure 

Section Two would change the vote required to set aside a CFPB 

regulation from two-thirds of the FSOC membership to a simple 

majority, excluding the Director of the CFPB. 

Section 3. Review authority of the Council 

Section Three would clarify that the FSOC must set aside any 

CFPB regulation that is inconsistent with the safe and sound operations of U.S. financial institutions, rather than merely allowing 

the FSOC to review, stay or block CFPB regulations or provisions 

that would ‘‘put the safety and soundness of the United States 

banking system or the stability of the financial system at risk.’’ 

Further, Section Three amends the time limits for the FSOC to 

review and vote on regulations. Section 1023 of the Dodd-Frank Act 

requires that the FSOC vote within the later of the following: (1) 

45 days following the date of filing the petition, unless a stay is 

issued; or (2) the expiration of a stay issued by the FSOC. If a vote 

is not taken within these time limits, the petition is deemed to 

have been dismissed. Section Three removes these time limits. 


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Section Three also requires that all FSOC meetings be open to 

the public whenever it decides to stay or set aside a CFPB regulation. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

DODD-FRANK WALL STREET REFORM AND CONSUMER 

PROTECTION ACT 

* * * * * * * 

TITLE X—BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

* * * * * * * 

Subtitle B—General Powers of the Bureau 

* * * * * * * 

SEC. 1023. REVIEW OF BUREAU REGULATIONS. 

(a) REVIEW OF BUREAU REGULATIONS.—On the petition of a member agency of the Council, the Council ømay¿ shall set aside a final 

regulation prescribed by the Bureau, or any provision thereof, if 

the Council decides, in accordance with subsection (c), that the 

øregulation or provision would put the safety and soundness of the 

United States banking system or the stability of the financial system of the United States at risk¿ regulation which is the subject 

of the petition is inconsistent with the safe and sound operations of 

United States financial institutions. 

* * * * * * * 

(c) STAYS AND SET ASIDES.— 

(1) * * * 

* * * * * * * 

(3) VOTE.— 

(A) IN GENERAL.—The decision to issue a stay of, or set 

aside, any regulation under this section shall be made only 

with the affirmative vote in accordance with subparagraph 

(B) of ø2⁄3¿ a majority of the members of the Council then 

serving, excluding the Director of the Bureau. 

(B) AUTHORIZATION TO VOTE.—A member of the Council 

may vote to stay the effectiveness of, or set aside, a final 

regulation prescribed by the Bureau only if the agency or 

department represented by that member has— 

(i) * * * 

(ii) made an official determination, at a public meeting where applicable, that the regulation which is the 

subject of the petition øwould put the safety and 

soundness of the United States banking system or the 


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stability of the financial system of the United States 

at risk¿ is inconsistent with the safe and sound operations of United States financial institutions. 

(4) DECISIONS TO SET ASIDE.— (A) * * * 

ø(B) TIMELY ACTION REQUIRED.—The Council may not 

issue a decision to set aside a regulation, or provision 

thereof, which is the subject of a petition under this section after the expiration of the later of— 

ø(i) 45 days following the date of filing of the petition, unless a stay is issued under paragraph (1); or 

ø(ii) the expiration of a stay issued by the Council 

under this section.¿ 

ø(C)¿ (B) SEPARATE AUTHORITY.—The issuance of a stay 

under this section does not affect the authority of the 

Council to set aside a regulation. 

ø(5) DISMISSAL DUE TO INACTION.—A petition under this section shall be deemed dismissed if the Council has not issued 

a decision to set aside a regulation, or provision thereof, within 

the period for timely action under paragraph (4)(B).¿ 

ø(6)¿ (5) PUBLICATION OF DECISION.—Any decision under this 

subsection to issue a stay of, or set aside, a regulation or provision thereof shall be published by the Council in the Federal 

Register as soon as practicable after the decision is made, with 

an explanation of the reasons for the decision. 

ø(7)¿ (6) RULEMAKING PROCEDURES INAPPLICABLE.—The notice and comment procedures under section 553 of title 5, 

United States Code, shall not apply to any decision under this 

section of the Council to issue a stay of, or set aside, a regulation. 

ø(8)¿ (7) JUDICIAL REVIEW OF DECISIONS BY THE COUNCIL.— A decision by the Council to set aside a regulation prescribed 

by the Bureau, or provision thereof, shall be subject to review 

under chapter 7 of title 5, United States Code. 

(8) PUBLIC MEETINGS.—Any time the Council meets pursuant 

to this section to decide whether to issue a stay of, or set aside, 

any regulation, every portion of such meeting shall be open to 

public observation. 

* * * * * * * 


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MINORITY VIEWS 

The Consumer Financial Protection Bureau (CFPB) is a very important part of the Wall Street Reform and Consumer Protection 

Act, as the title of the bill makes clear. Until passage of that Act, 

consumer protection in financial matters was in the hands of regulators who consistently treated consumer protection as a second 

class concern. Creating an independent bureau was intended to ensure that consumer interests are fully considered on the merits and 

not relegated to an afterthought. 

H.R. 1315 would reverse this by restoring the prudential regulators’ authority over consumer protection by providing that the Financial Stability Oversight Council (FSOC) could overrule, by majority vote, a CFPB regulation on any policy ground it deems appropriate. This would take away the very independence of the 

CFPB that the law intended to establish. 

BARNEY FRANK. 

LUIS V. GUTIERREZ. 

GARY C. PETERS. 

ANDRE ́ CARSON. 

WM. LACY CLAY. 

EMANUEL CLEAVER. 

GARY L. ACKERMAN. 

CAROLYN MCCARTHY. 

JOE BACA. 

JOE DONNELLY. 

BRAD SHERMAN. 

MICHAEL E. CAPUANO. MELVIN L. WATT. MAXINE WATERS. KEITH ELLISON. CAROLYN B. MALONEY. BRAD MILLER. GREGORY W. MEEKS. AL GREEN. STEPHEN F. LYNCH. RUBE ́ N HINOJOSA. 

Æ 


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