Alert January 10, 2013

Congress Approves Bill on the Treatment of Confidential Information During CFPB Examinations

Congress has passed and the President has signed a bill that amends Section 1821(t) of the Federal Deposit Insurance Act—governing the sharing of information without waiving privilege—to include the CFPB as a “covered agency.” Section 1821(t) concerns covered entities sharing information with an agency without waiving privilege.  Although the CFPB previously issued a guidance bulletin in response to concerns from supervised entities over the protection of privileged information (see February 21, 2012 Alert), without the legislative fix, supervised entities were concerned that the CFPB would be required to turn over privileged information to third parties.