Senate Banking would zero out CFPB funding in reconciliation

The Senate Banking Committee would shut off the Consumer Financial Protection Bureau’s funding stream from the Federal Reserve to provide the vast majority of deficit reduction in reconciliation provisions released Friday.

The panel posted an eight-page text that would restrict the CFPB from requesting a transfer from the Fed, according to a section-by-section explanation of the legislation.

The CFPB currently can ask for up to 12 percent of the Fed’s operating expenses in 2009. The reconciliation measure would reduce that cap to zero.

“This does not affect the Bureau’s existing ability to request funds from Congress and saves $6.36 billion,” the section overview says.

The provision could, however, violate Senate rules for reconciliation bills. Some Republican members of the committee