If the Consumer Protection Bureau Has No Director By Its Start Date:

What Happens if the Consumer Financial Protection Bureau Has No Director By Its Start Date?

...... July 21.

That outcome looks certain, given
that the House Oversight Committee has scheduled its ritual flogging of its defacto head, Elizabeth Warren,
for July 14, and Senate Republicans have vowed to nix any candidate lest they get to strangle the agency by
controlling its budget.

Even if Obama were to have a brain transplant and do something so out of character as to get in a fight with
banks and the Republicans, the logical window of opportunity for breaking the Senate’s planned pro-forma
sessions (a device to forestall a recess appointment) would be the four week end of summer Congressional break.
That starts August 8. So it looks like a sure bet that the CFPB will go past July 21 with no chief in place.

Contrary to popular opinion (and bank lobbyist fond hopes) the CFPB is not stymied if a director has not been
installed. What would happen is:

1. The CFPB does not get moved to the Fed. It stays in the Treasury under Geithner.

2. The CFPB cannot act on new regulatory powers created by Dodd Frank, but it can act in one of its planned
and still large roles, that of the overseer of existing consumer financial regulation which is now scattered
among many agencies. Those powers are transferred to the CFPB as of July 21.

snp

http://www.nakedcapitalism.com/2011/06/what-happens-if-consumer-financial-protection-bureau-has-no-director-by-its-start-date.html