GOP Senator Drops Opposition to CFPB Bill

WASHINGTON — Sen. Bob Corker, R-Tenn., announced Wednesday he is ending his opposition to an industry-backed bill ensuring banks can keep their claim of privilege when handing confidential information to the Consumer Financial Protection Bureau.

At the same time, Corker said that he is co-sponsoring a bill that would combine the so-called CFPB privilege bill with another top legislative priority of the banking industry, a measure that would remove the requirement that banks put physical placards on ATMs to notify customers of fees.

Both measures have separately passed the House of Representatives, and Corker's move would appear to smooth a path for them to become law soon. According to industry officials, Corker was not the only senator who was holding up the CFPB privilege bill, but his opposition was seen as the key impediment blocking passage of the bill.

Corker previously argued that the privilege bill should be considered as part of a larger package of changes to the Dodd-Frank Act, but he gave up that fight Wednesday.

"It is unfortunate but clear that there will be no real discussion of any changes to Dodd-Frank before the election, and I don't want to interfere with any firm's ability to adequately protect their customers' privileged information," Corker said in a press release.

The combined bill that Corker is co-sponsoring includes a measure aimed at stopping a rash of lawsuits against banks and other ATM owners. Its backers allege that certain individuals have been removing fee disclosure signs from ATMs and then filing frivolous lawsuits.

Under the legislation, whose sponsors include Senate Banking Committee Chairman Tim Johnson and the committee's top Republican, Sen. Richard Shelby, ATM owners would still be required to provide customer with an on-screen notice of any fees.

The privilege bill addresses worries at financial institutions that a court might determine that by turning documents over to the CFPB, they waived the documents' privilege, which in turn could force the bank to turn over the same documents to their opponents in a lawsuit.

The CFPB has tried to address banks' concerns, but the industry has maintained that a legislative fix is necessary.

James Ballentine, a lobbyist for the American Bankers Association, voiced optimism Wednesday about the merged bill's chances of passage.

"Combining both of them certainly works well and we think will be helpful," he said. "We're feeling optimistic about them moving."