On May 14, the CFPB published a Federal Register notice withdrawing its proposed rule on the Procedures for Supervisory Designation Proceedings. These amendments were each codified in 12 C.F.R. 1091. As previously covered by InfoBytes, the Bureau published one of these amendments changing how it would procedurally designate nonbanks for supervision. Another one of these amendments provided for the public release of final decisions and orders. The CFPB expressed concern regarding the reputational risk caused by release of a final decision and that the same could pressure entities to consent to supervisory designation to avoid the release of a public decision when they may otherwise have good arguments as to why the designation is unwarranted. The Bureau’s three amendments occurred on April 29, 2022, Nov. 21, 2022, and April 23, 2024, and the Bureau now seeks public input on its most recent proposed rule. The comment period ends on June 13.
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