Consumer Chief Supports Legislation to Protect Attorney-Client Privilege for Supervised Banks

The recently appointed director of the new Consumer Financial Protection Bureau is siding with banks that hope to protect attorney-client privilege.

At a news conference on Thursday, agency director Richard Cordray said he would support a push by banks that want the agency to be covered by a law requiring regulators to respect attorney-client privilege, Bloomberg News reports. The 2006 law covers agencies such as the Federal Deposit Insurance Corp., but not the Consumer Financial Protection Bureau.

“If the banks want to get us listed in the statute, we would welcome that,” he said.

A bulletin issued by the agency on Wednesday said banks must disclose privileged material on request, but they don’t have to fear a waiver of the attorney-client privilege, according to a client alert by Pepper Hamilton.