The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau are engaging in a high-stakes battle over the latter agency's effort to rein in mandatory arbitration clauses, in a rare public spat between federal regulators.

Acting Comptroller Keith Noreika provoked the fight by publicly criticizing the CFPB's final arbitration rule, requesting that it delay its publication in the Federal Register until after the OCC has the chance to analyze and study its impact on safety and soundness. Yet his demands came late in the process, after a lengthy rule-writing effort by the CFPB in which the OCC never previously indicated any concerns with the plan. The OCC also has not offered any evidence that the CFPB rule, which would largely ban mandatory arbitration clauses, poses a threat to banks.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.