Congress will not block a Consumer Financial Protection Bureau rule requiring financial institutions to report demographic information about their small business lending, but an injunction issued by a federal judge means the agency still cannot implement the rule now.
On Wednesday, the Senate failed to override President Biden’s veto of a resolution, S. J. Res 32, that would have killed the rule. The override vote was 54-45, far short of the two-thirds margin needed to override the veto.
The CFPB rule, which has been criticized by financial services trade groups, is intended to look for potential discrimination in small business lending. It would require financial institutions to report demographic information from small business loan applicants.
During debate on the override attempt Wednesday, Sen. John Kennedy, R-La., was blunt in his criticism of the CFPB and its rule. “If you ever want to understand why the American people hate the Federal Government, just look at the output of the CFPB,” he said. “I mean it. Common sense is illegal there.”
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