#data leak

14 06, 2023


2023-06-14T16:55:35-04:00June 14th, 2023|5- Client Report|

Chopra Holds His Own Under GOP SVB, Consumer-Protection Attack

With Rep. Andy Barr (R-KY) leading the attack with an accusation of CFPB “McCarthyism,” today’s HFSC hearing with Director Chopra tracked much in yesterday’s Senate Banking session.  As before, Republicans strongly attacked the credit-card late-fee proposal (see FSM Report CREDITCARD36) and new small-business reporting requirements.  However, the lengthy session also allowed Members on both sides of the aisle to probe issues to which Senate Banking failed to turn.  One of these was the FDIC’s decision to establish bridge banks for SVB and Signature and to sell FRC to JPM.  Mr. Chopra vigorously denied any role of what some have called progressive ideology in opposing bids for SVB, noting also systemic concerns at that time partly due to fears about Credit Suisse.  The agency’s controversial data-rights proposal will be out in October, with Director Chopra saying also that the proposal covers nonbanks by virtue of the data to be covered.  Provider cyber-security will also be addressed.  This report covers additional high-impact issues at the hearing including AI, UDAAP, and systemic designation.


19 04, 2023


2023-04-19T17:26:14-04:00April 19th, 2023|2- Daily Briefing|

Hsu Treads Carefully Into Open Banking

In remarks today, Acting Comptroller Hsu highlighted the liquidity, cybersecurity, and even structural challenges that may arise from open banking.  He argues that account portability may lead to heightened retail deposit liquidity risk and increased retail outflows, noting that online and mobile banking may well have facilitated the large outflows experienced by SVB and SBNY.  Banks could require new cyber-risk controls due to the increase in volume and complexity of consumer data.

Chopra Expands Anti-Discrimination Campaign

Under heavy fire today from a staff data breach, CFPB Director Chopra nonetheless emphasized the agency’s strong stand against credit discrimination.  Building on a recent statement of interest in a filing related to student loan litigation, the Bureau is now not only combatting traditional forms of discrimination, but also the targeting Mr. Chopra describes as reverse redlining across the spectrum of consumer-finance products and every contact point in the credit origination, servicing, marketing, and technology process.


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