Posted Feb 24, 2012 05:38 pm CST
The ABA is urging Congress to update federal legislation to provide explicit protection for privileged bank materials shared with the newly created Consumer Financial Protection Bureau.
In letters to key House and Senate leaders, ABA President Wm. T. (Bill) Robinson III says he supports pending legislation to make clear there is no privilege waiver, according to an ABA press release. Current law already protects privileged materials shared with other federal banking agencies.
The pending legislation would create a single, consistent standard for the treatment of privileged information submitted to all federal agencies that supervise banks, the letters say.
CFBP director Richard Cordray has acknowledged concern over the issue, even though his agency has issued guidance that current law protects privileged materials it receives. He supports legislation to resolve any doubt, according to the letters.