Industry Will Not Face Censure Over Non-Binding Guidance, Insist U.S. Regulators

Sep 17, 2018

 

The Consumer Financial Protection Bureau (CFPB), along with the Federal Reserve and other banking agencies, last week reaffirmed that supervisory guidance “does not hold the force and effect of law." Mark Chorazak comments. 

An excerpt from "Industry Will Not Face Censure Over Non-Binding Guidance, Insist U.S. Regulators," Payments Compliance, September 17, 2018: 

Mark Chorazak, a partner at Cadwalader, Wickersham & Taft, said the timing of last week’s interagency statement was not surprising “now that all the banking agencies are led by Republicans.”  

There was “a long simmering concern among compliance and legal personnel at banks” that the more controversial guidance, issued when each of the agencies had different leadership, was “taking on a greater meaning by examiners.” 

“In effect, guidance wasn’t just guidance,” said Chorazak. “Performance could be assessed against a particular piece of guidance, which could lead to the issuance of an MRA (matters requiring attention) or other supervisory criticism.”

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