On January 4, 2011, the Consumer Financial Protection Bureau (“Bureau”) entered into a memorandum of understanding (“Memorandum”) with the Conference of State Bank Supervisors (“CSBS”) titled “On the Sharing of Information for Consumer Protection Purposes.” The Memorandum’s stated purpose is:
[T]o establish the framework for the parties, consistent with law, to establish and enhance the cooperative relationship between the [Bureau] and State Regulators contemplated by [Article X of the Dodd-Frank Act] and to preserve the confidential nature of the information the parties share by and among themselves.
According to a press release issued by the Department of the Treasury, the parties to the Memorandum “will endeavor to promote consistent examination procedures and effective enforcement of state and federal consumer laws and to minimize regulatory burden and efficiently deploy supervisory resources.” Elizabeth Warren, special advisor to Treasury Secretary Tim Geithner regarding the Bureau, had this to say about the Memorandum:
The new consumer financial agency and the state banking regulators are forging an alliance to protect American families. . . . This agreement allows us to bring thousands of financial service providers out of the shadows and to begin the process of ensuring that all lenders comply with the same basic rules.
Stay tuned to the CFSL Bulletin for further developments.