CFPB to revisit open banking rule
In its latest about-turn under the Trump administration, the Consumer Financial Protection Bureau is preparing to reopen its recently finalised open banking rule, according to Bloomberg Law.
0
In October, the CFPB published the Personal Financial Data Rights final rule, designed to give Americans the right to instruct their banks to share their financial data with third party providers.
However, according to Bloomberg Law, citing sources, the Trump administration is now set to reopen the rule and potentially vacate it.
The plan comes as banks raise concerns about potential liability for data breaches and the ability to charge for access to data, says Bloomberg. The banks also want to the ability to stop firms that abuse their access to customer data from the system.
It is not known whether the rule will be amended or eliminated.
Steve Boms, CEO of open banking advocates FDATA North America, says: 'Reopening this rulemaking means stalling financial innovation and prolonging uncertainty for both businesses and consumers in America."
However, the plan has long proved unpopular with many in the traditional financial industry. Within days of the rule being finalised, the Bank Policy Institute and Kentucky Bankers Association filed a lawsuit against the CFPB, alleging that the regulatory agency overstepped its authority with the new rules.
The suit argues the rule puts the entire responsibility of protecting customers on the banks, while the CFPB takes no accountability for the oversight or supervision of data recipients.
For the CFPB, this is the latest example of a starkly different approach under Trump as it scales back its activities and reverses previous positions under acting Director Russell Vought.
In March it ditched an interpretive rule declaring that pay-in-four BNPL lenders should be treated in the same way as credit cards.
In recent weeks it has also dropped a host of lawsuits, including against JPMorgan Chase, Bank of America and Wells Fargo over fraud on the Zelle P2P payments network.
Meanwhile, a rule that would give the watchdog oversight of tech giants such as Apple, Google and X, that offer digital payment apps and wallets has been killed off by the Senate and House of Representatives.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
19 minutes ago
- Reuters
Citigroup drops July rate cut bets for US, trims forecast to 75 bps
June 9 (Reuters) - Citigroup has pushed back its U.S. rate cut forecast to September from July and now expects three cuts this year instead of four, after a stronger-than-expected May jobs report in an otherwise cooling labor market. The Wall Street brokerage anticipates 75 basis points (bps) of cuts this year in three equal tranches in September, October and December, revising its earlier forecast of 100 bps of cuts. The brokerage also forecast two rate cuts of 25 bps each in January and March of 2026. The Federal Reserve's last rate cut was in December 2024, when it reduced the key lending rate by 25 bps. U.S. non-farm payrolls increased by 139,000 jobs last month after a downwardly revised rise of 147,000 in April, data showed. Economists polled by Reuters had estimated May payrolls to rise by 130,000 jobs. The U.S. central bank is expected to keep interest rates unchanged at its meeting next week, while traders have priced in close to two 25-bps cuts by December. On Friday, Citi lifted its S&P 500 (.SPX), opens new tab year-end target to 6,300 from 5,800 earlier, expressing renewed optimism in corporate earnings resilience and the accelerating momentum of artificial intelligence-driven growth. The benchmark S&P 500 index closed above 6,000 for the first time since late February on Friday.
The Independent
26 minutes ago
- The Independent
Watch: Federal agents use tear gas and flash grenades to disperse LA protesters
Tear gas, rubber bullets and flash bangs have been used by law enforcement in Los Angeles after protesters took to the streets in response to Donald Trump 's deployment of the National Guard. The protesters blocked off a major freeway on Sunday (8 June), setting self-driving cars on fire, as federal agents tried to control the crowd. Some threw objects at police from behind a makeshift barrier, while others hurled chunks of concrete, rocks and electric scooters and fireworks at California Highway Patrol officers. Sunday's protests came on the e third and most intense day of demonstrations against Trump's immigration crackdown in the region, as the arrival of around 300 Guard troops spurred anger and fear among many residents.
Auto Blog
40 minutes ago
- Auto Blog
House Speaker Reveals ‘Likely Decision' on Whether Congress Will Save $7,500 EV Tax Credit
Speaker of the House Mike Johnson has shed light on whether the US will follow in the footsteps of countries like Germany and China by eliminating a significant EV subsidy. The fate of the U.S.'s popular $7,500 federal EV tax credit hangs in the balance House Speaker Mike Johnson has told Bloomberg, 'I think there is a better chance we kill it than save it,' when describing how Congress plans to handle the future of the $7,500 federal tax credit for qualifying new electric vehicle (EV) purchases. 'But we'll see how it comes out,' he added. While the credit hasn't expired, debate surrounding its future has been ongoing, with talks of eliminating the government subsidy accelerating since President Trump's re-election and a need to pay for his significant tax cut package. There isn't a clear indication that Congress is also considering eliminating tax credits of up to $4,000 and $1,000 for qualifying used EV purchases and home EV charging infrastructure installation, respectively. Congress is expected to decide on the $7,500 EV credit by the next budget resolution, which was supposed to be complete by April 15, but Congress often doesn't meet this deadline. The government is operating under a continuing resolution, extending funding through September 30, 2025. U.S. Speaker of the House Mike Johnson — Source: Getty The Congressional Budget Office made a 2022 estimate that the $7,500 federal EV tax incentive would cost $12.5 billion over ten years, but an analysis by consulting firm Capital Alpha Partners in March noted that its cost could exceed $200 billion. Former President Biden signed the Inflation Reduction Act in 2022, which included extending the federal EV subsidy through 2032. In 2024, the federal government is estimated to have spent about $2 billion in advance point-of-sale EV tax credit payments, according to Electrek. Tesla's CEO, Elon Musk, said in December that he wants the government to eliminate all tax breaks for EV buyers, not just the $7,500 incentive, according to Politico. In July, Musk also posted on X, formerly Twitter: 'Take away the subsidies. It will only help Tesla.' Other countries like Germany and China have recently diminished EV incentives in recent years, as noted by InsideEVs. Congress has other EV matters on its mind On May 1, the House of Representatives voted and passed resolutions to block California's federal waivers allowing the state to enforce strict vehicle emission standards, including California's 2035 ban on sales of new gas-powered passenger vehicles. While next steps with the resolutions rest with the Senate, the Senate parliamentarian and the Government Accountability Office have ruled that Congress doesn't have the authority to revoke California's waiver. The Senate parliamentarian and the Government Accountability Office don't legally bind the Senate, but instances of the Senate ignoring the parliamentarian's advice are rare and can generate controversy. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Donald Trump exiting a Tesla Model S — Source: Getty Final thoughts Complications of the U.S. government cutting the $7,500 EV credit are compounded by the segment's growth. According to Cox Automotive, U.S. drivers bought almost 300,000 new EVs during Q1, an 11.4% year-over-year increase, and around 7.5% of new car purchases in the U.S. were EVs, a 7% increase from a year earlier. Subsidies like the $7,500 credit are naturally a significant reason consumers feel motivated to make an EV purchase, so eliminating the incentive will likely cause a major disruption within the automotive market, which is already occurring with President Trump's tariffs on vehicle and parts imports. About the Author Cody Carlson View Profile
