These 5 senators are key to the CFPB arbitration rule fight
July 31, 2017 4:09 PM
Pete Marovich/Bloomberg
Five GOP senators to watch in CFPB arbitration rule fight
Four Republican senators are being eyed as possible defectors on a vote to repeal the CFPB's arbitration rule , while another senator may be absent, which will make the GOP's job harder.
Andrew Harrer/Bloomberg
Sen. John Kennedy, R-La.
The freshman senator was the only Republican member of the Senate Banking Committee not to be a co-sponsor on Chairman Mike Crapo’s resolution. He declined to say whether he would support the measure when asked last week. His office said he is studying the measure. However, bank lobbyists believe Kennedy may be successfully pressured into supporting the repeal effort.
“I think he will be one that will come around and support his banking committee chairman on an important vote,” said Paul Merski, executive vice president of congressional relations for the Independent Community Bankers of America. “He hasn’t come out and said he opposes it.”
“I think he will be one that will come around and support his banking committee chairman on an important vote,” said Paul Merski, executive vice president of congressional relations for the Independent Community Bankers of America. “He hasn’t come out and said he opposes it.”
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Sen. Lindsey Graham, R-S.C.
Graham is usually tight with Senate leadership, but he co-sponsored legislation in 2015 that would allow military service members to opt out of arbitration agreements. That is a clear sign to lobbyists that he will be reluctant to repeal the CFPB’s rule.
“While the whip count is still fluid, our operating assumption at this point is that Sen. Graham is unlikely to support the measure,” Isaac Boltansky, a policy analyst at Compass Point Research & Trading, wrote in a client note.
Part of his issue may be that the Congressional Review Act would prevent the CFPB from writing a similar rule in the future and it’s not clear if that would apply to a service-member-specific rule. Congress could take it upon itself to enact legislation to make the fix, but that could be a heavier lift than rescinding the CFPB rule.
“While the whip count is still fluid, our operating assumption at this point is that Sen. Graham is unlikely to support the measure,” Isaac Boltansky, a policy analyst at Compass Point Research & Trading, wrote in a client note.
Part of his issue may be that the Congressional Review Act would prevent the CFPB from writing a similar rule in the future and it’s not clear if that would apply to a service-member-specific rule. Congress could take it upon itself to enact legislation to make the fix, but that could be a heavier lift than rescinding the CFPB rule.
Andrew Harrer/Bloomberg
Sen. John McCain, R-Ariz.
The longtime lawmaker and former GOP presidential candidate was the nail in the coffin for the health care vote last week, casting a late vote that doomed the measure. His views on the CFPB arbitration rule are unclear.
But he left Washington last week to undergo treatment for brain cancer, and it’s unclear whether—even if he supports repealing the CFPB rule—he will be able to be present to vote for it. If McCain cannot attend the vote, Republicans could afford to lose only one more GOP senator.
“Republicans have little room for error with a 52-48 majority in the Senate, and given that the length of Sen. John McCain's upcoming absence is unknown, it is possible the majority might be 51-48 for some time,” Gardner said.
But he left Washington last week to undergo treatment for brain cancer, and it’s unclear whether—even if he supports repealing the CFPB rule—he will be able to be present to vote for it. If McCain cannot attend the vote, Republicans could afford to lose only one more GOP senator.
“Republicans have little room for error with a 52-48 majority in the Senate, and given that the length of Sen. John McCain's upcoming absence is unknown, it is possible the majority might be 51-48 for some time,” Gardner said.
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Sen. Lisa Murkowski, R-Alaska
The Alaska Republican is a well-known GOP moderate who has already bucked her party on the health care and other debates. She is said to share Sen. Graham's concerns about mandatory arbitration agreements for service members.
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Sen. Susan Collins, R-Maine
Like Murkowski, Collins is a noted GOP moderate who clashes with Republican leadership. She has not said how she views the CFPB rule repeal, but has generally favored tougher regulations on banks.
