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CFPB Proposes Clarified Bank Confidentiality Rule

FINANCIAL PRIVACY—U.S.

March 13, 2012

Seeking to quell worries expressed by financial firms, the Consumer Financial Protection Bureau (CFPB) has proposed a rule to clarify the protection of sensitive documents submitted to the agency, reports The Wall Street Journal. Citing a lack of clarity in the 2010 Frank-Dodd law, financial firms worry that lawyers and third parties could access submitted sensitive documents, which could place the firms at risk of lawsuits. The proposed rule states that submission of private legal documents "shall not be construed" as waiving the privacy protections of the documents, the report states. CFPB Director Richard Cordray said the rule will help promote "the flow of information between the bureau and its supervised entities." The proposal is open for public comments for 30 days. (Registration may be required to access this story.)
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