States and CFPB Sign Information Sharing Agreement, Set Foundation for Coordinated Financial Regulation
January 5, 2011
New York, N.Y.: Yesterday Richard H. Neiman, Superintendent of Banks for the State of New York, joined other members of the Conference of State Bank Supervisors (CSBS) and the Consumer Financial Protection Bureau (CFPB) implementation team to sign a memorandum of understanding (MOU) establishing a foundation of state and federal coordination and cooperation for supervision of providers of consumer financial products and services. New York was one of the first four states that signed the agreement yesterday, while other states are expected to follow.
“By signing this agreement state regulators and the Consumer Financial Protection Bureau are moving toward more cooperative regulatory relationships, a new form of federalism,” said Superintendent Neiman. “Together we can ensure that consumers are protected across the nation under a financial supervision system that is both comprehensive and efficient.”
As part of the agreement, state regulators and the CFPB will consult each other regarding the standards, procedures and practices used to conduct compliance examinations of financial services providers. This includes both depository institutions, such as banks, and non-depository institutions such as mortgage lenders, mortgage servicers and money transmitters.
“By using what is best in our current dual state-federal regulatory framework, we can achieve appropriate oversight and promote national standardization of consumer financial products and services while making the highest use of the expertise and resources of each level of government,” said Neiman.
A copy of the Memorandum of Understanding is available at http://www.dfs.ny.gov/about/press/ag110104.pdf.
The New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $2.2 trillion.
In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our website at www.banking.state.ny.us.
CSBS press release: http://www.csbs.org/news/press-releases/pr2010/Pages/pr-010411.aspx .