The Clearing House (TCH), along with the FSR (and the FSR’s Housing Policy Council), the ABA, the CBA and the CCMC (Associations) filed a comment letter with the CFPB in response to its NPR that would amend its rules regarding the disclosure of information and records, including Confidential Supervisory Information (“CSI”). Among other things, the NPR proposes to expand the Bureau’s ability to share CSI with third parties. Specifically, if the rule, as proposed, were finalized, the Bureau would be able to share CSI with any “agency,” which would be defined as a “Federal, State, or foreign governmental authority, or an entity exercising governmental authority,” regardless of whether the “agency” has “jurisdiction” over the company whose CSI would be shared, in contravention of the underlying statute. In the letter the Associations express concerns with this proposed expansion of the Bureau’s ability to share CSI, including that the proposed expansion could increase litigation and reputational risk for financial institutions, undermine the vitality of the bank examination privilege, and potentially breach a supervised institution’s legal privileges should the materials be shared beyond the scope contemplated by Section 1828(x) of the FDI Act.
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