Banking Regulators Engage in Unusually Public Spat
By Chris Bruce
An unusually public dust-up between two bank regulators may be just the start of a running debate over regulatory policy as the Trump administration puts its stamp on the federal bank regulatory agencies. Sharp disagreement between Consumer Financial Protection Bureau Director Richard Cordray and acting Comptroller of the Currency Keith Noreika escalated after Cordray July 10 issued a rule barring the use of mandatory arbitration contract clauses to block class actions by consumers. …This is far from the first time banking regulators have disagreed, although the spat stands out because it’s so public, according to Karen Shaw Petrou, co-founder and managing partner of Federal Financial Analytics, Inc., a Washington, D.C., company that advises financial services companies, central banks, and others. “Typically, these kinds of battles are waged behind closed doors or in a manner that’s not directly confrontational, often through proxies or in statements to Congress,” Shaw Petrou told Bloomberg BNA.