19–006 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 112–417 

AMENDING THE FEDERAL DEPOSIT INSURANCE ACT WITH RESPECT TO 

INFORMATION PROVIDED TO THE BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

MARCH 20, 2012.—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. 4014] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 4014) to amend the Federal Deposit Insurance Act with 

respect to information provided to the Bureau of Consumer Financial Protection, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. 

PURPOSE AND SUMMARY

The purpose of H.R. 4014 is to clarify that institutions regulated 

by the Consumer Financial Protection Bureau (CFPB) have not 

risked and will not waive applicable legal privileges as to third parties when they have shared or will provide information to the 

CFPB. The bill also makes clear that the CFPB can share such information with other Federal agencies without impacting a regulated institution’s attorney-client privilege or work-product immunity as it applies to third parties. This statutory change will ensure 

that privileged information remains privileged. 

Specifically, H.R. 4014 amends Section 11(t)(2)(A) of the Federal 

Deposit Insurance Act (the Act) by adding the CFPB to the list of 

covered agencies that may share information with other covered or 

Federal agencies without waiving any privilege applicable to the information. The other covered agencies currently include any Federal banking agency, the Farm Credit Administration, the Farm 

Credit System Insurance Corporation, the National Credit Union 


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1See How will the CFPB Function Under Richard Cordray?: Hearing Before the Subcomm. on 

TARP, Fin. Serv. & Bailouts of Pub. & Private Programs of the H. Comm. on Oversight & Gov’t 

Reform, 112th Cong. (2012) (statement of Richard Cordray, Director, U.S. Consumer Fin. Prot. 

Bureau). 

Administration, the Government Accountability Office, and the 

Federal Housing Finance Agency. 

The bill also amends Section 18(x) of the Act to reemphasize that 

the submission by any person of any information to the CFPB in 

the course of any supervisory or regulatory process does not waive, 

destroy, or otherwise affect any privilege the person may claim 

with respect to third parties. It is the Committee’s intent that ‘‘any 

person’’ shall be construed to include any individual, partnership, 

company, corporation, association (incorporated or unincorporated), 

trust, estate, cooperative organization, firm, society, joint stock 

company, or other entity. 

BACKGROUND AND NEED FOR LEGISLATION

Many supervised institutions have expressed concern that providing the CFPB privileged information could waive the institutions’ privilege with respect to third parties. In response to these 

concerns, the CFPB stated in a bulletin that it would take reasonable and appropriate actions to assist supervised institutions in rebutting any claim that they have waived privileges by providing information to the CFPB. The CFPB has also issued a proposed rule 

stating that any person who submits information to the CFPB has 

not waived any applicable privileges. The proposed rule even provides that no waiver occurs when the CFPB shares privileged information with any state or federal agency. Richard Cordray of the 

CFPB has also expressed support for a legislative clarification.1

H.R. 4014, introduced by Representative Bill Huizenga, addresses these concerns. It clarifies that a supervised institution that has 

submitted information to the CFPB has not waived applicable 

privileges, and that privilege is not waived if the CFPB shares such 

information with other Federal agencies. 

HEARING

The Subcommittee on Financial Institutions and Consumer Credit held a legislative hearing on February 8, 2012 entitled ‘‘Legislative Proposals to Promote Accountability and Transparency at the 

Consumer Financial Protection Bureau.’’ The following witnesses 

testified: • Mr. Michael J. Hunter, Chief Operating Officer, American 

Bankers Association • Mr. Andrew J. Pincus, Partner, Mayer Brown LLP, on behalf of the U.S. Chamber of Commerce • Mr. Chris Stinebert, President and Chief Executive Officer, American Financial Services Association • Mr. Arthur E. Wilmarth, Jr., Professor of Law, The George 

Washington University 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

February 16, 2012 and ordered H.R. 4014 favorably reported to the 

House by voice vote. 


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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. The Committee did 

not take any record votes on H.R. 4014 on February 16, 2012. A 

motion by Chairman Bachus to report the bill to the House with 

a favorable recommendation was agreed to by voice vote. 

During consideration of H.R. 4014, the following motion was considered by the Committee: 

A motion offered by Mr. Bachus of Alabama to move the previous question on H.R. 4014 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 objective of H.R. 4014 is to clarify that institutions regulated 

by the Consumer Financial Protection Bureau (CFPB) have not 

risked and will not waive applicable legal privileges as to third parties when they have shared or will provide information to the 

CFPB. Another objective of the bill is to make clear that the CFPB 

can share such information with other Federal agencies without 

impacting a regulated institution’s attorney-client privilege or 

work-product immunity as it applies to third parties. This statutory 

change will ensure that privileged information remains privileged. 

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 ESTIMATE

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: 


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MARCH 19, 2012. 

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. 4014, a bill to amend the 

Federal Deposit Insurance Act with respect to information provided 

to the Bureau of Consumer Financial Protection. 

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

to provide them. The CBO staff contact is Daniel Hoople. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 4014—A bill to amend the Federal Deposit Insurance Act with 

respect to information provided to the Bureau of Consumer Financial Protection 

H.R. 4014 would clarify that sharing privileged information with 

the Consumer Financial Protection Bureau (CFPB) does not waive 

certain legal privileges and would not open that information or a 

financial institution up to a third-party subpoena. CBO estimates 

that enacting this legislation would have no impact on the federal 

budget; therefore, pay-as-you-go procedures do not apply. 

H.R. 4014 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. 

Under current law, sharing privileged information with a covered 

agency during the course of a supervisory or regulatory process 

does not waive attorney-client, work-product, or other privileges 

recognized under federal or state law. Covered agencies include, for 

example, any federal banking agency, the Farm Credit Administration, the Government Accountability Office, and the Federal Housing Finance Agency. 

H.R. 4014 would add the CFPB to the list of covered agencies, 

thus protecting information shared with the bureau in a similar 

manner. The CFPB has indicated that it would follow this practice 

in absence of legislation and has recently issued a proposed rulemaking to that effect. Enacting this legislation would eliminate any 

uncertainty about whether the CFPB can protect such information. 

The CBO staff contact for this estimate is Daniel Hoople. 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. 


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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 the section 102(b)(3) of the 

Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 4014 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. FDIA amendments regarding disclosures to the Bureau 

of Consumer Financial Protection 

This section makes a number of changes to the Federal Deposit 

Insurance Act (12 U.S.C. 1811 et seq.). 

First, it amends Section 11(t)(2)(A) of the Act by adding the Bureau of Consumer Financial Protection to the list of covered agencies that can share privileged information with other covered and 

Federal agencies without waiving any privilege applicable to the information. 

Second, it amends Section 18(x) of the Act by establishing that 

the submission of any information to the CFPB in the course of any 

supervisory or regulatory process shall not be construed as 

waiving, destroying, or otherwise affecting any privilege the person 

may claim. The section also makes clear that even absent the 

CFPB’s addition to Section 18(x), sharing privileged material with 

the CFPB would not necessarily waive privilege. 

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): 

FEDERAL DEPOSIT INSURANCE ACT 

* * * * * * * 

SEC. 11. (a) * * * 

* * * * * * * 

(t) AGENCIES MAY SHARE INFORMATION WITHOUT WAIVING PRIVILEGE.— 

(1) * * * 

(2) DEFINITIONS.—For purposes of this subsection: 

(A) COVERED AGENCY.—The term ‘‘covered agency’’ 

means any of the following: 

(i) * * * 

* * * * * * * 

(vi) The Bureau of Consumer Financial Protection. 

* * * * * * * 


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SEC. 18. (a) * * * 

* * * * * * * 

(x) PRIVILEGES NOT AFFECTED BY DISCLOSURE TO BANKING

AGENCY OR SUPERVISOR.— 

(1) IN GENERAL.—The submission by any person of any information to the Bureau of Consumer Financial Protection, any 

Federal banking agency, State bank supervisor, or foreign 

banking authority for any purpose in the course of any supervisory or regulatory process of øsuch agency¿ such Bureau, 

agency, supervisor, or authority shall not be construed as 

waiving, destroying, or otherwise affecting any privilege such 

person may claim with respect to such information under Federal or State law as to any person or entity other than øsuch 

agency¿ such Bureau, agency, supervisor, or authority. 

(2) RULE OF CONSTRUCTION.—No provision of paragraph (1) 

may be construed as implying or establishing that— 

(A) * * * 

(B) any person would waive any privilege applicable to 

any information by submitting the information to the Bureau of Consumer Financial Protection, any Federal banking agency, State bank supervisor, or foreign banking authority, but for this subsection. 

* * * * * * * 


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MINORITY VIEWS 

We are pleased to support this bill. The legislation does not do 

anything to weaken the underlying law that established the Consumer Financial Protection Bureau (‘‘CFPB’’), but provides clarity 

regarding the treatment of confidential information submitted to 

CFPB by the institutions it regulates. 

We understood that the maintenance of privilege is implicit in 

the law, but since the question has been raised, it is a good idea 

to make it explicit. By making this explicit, we remove a potential 

obstacle to institutions cooperating with the CFPB, and allow the 

agency to better carry out its mission of protecting consumers. 

BARNEY FRANK. 

GARY L. ACKERMAN. 

JOE DONNELLY. 

MICHAEL E. CAPUANO. 

ANDRE ́ CARSON. 

GWEN MOORE. 

CAROLYN MCCARTHY. 

MELVIN L. WATT. 

RUBE ́ N HINOJOSA. 

WM. LACY CLAY. 

JOE BACA. 

KEITH ELLISON. 

JAMES HIMES. 

CAROLYN B. MALONEY. 

Æ 


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