Protection Bureau

I Consumer Financial
I

1700 Street NW, Washington, DC 20552

January 17, 2018

The Honorable Janet L. Yellen

Chair, Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, NW

Washington, DC 20551

RE: Funds Transfer Request, FY 2018 Quarter 2

Dear Chair Yellen:

Section 1017(a)(1) 0f the Consumer Financial Protection Act requires the Board of
Governors of the Federal Reserve System (?Board?) to transfer to the Bureau of Consumer
Financial Protection (?Bureau?), a quarterly sum ?determined by the Director to be reasonably
necessary to carry out the authorities of the Bureau under Federal consumer ?nancial law, taking
into account such other sums made available to the Bureau from the preceding year (or quarter of
such year).?

This letter is to inform you that for Second Quarter of Fiscal Year 2018, the Bureau is requesting



The reason for this is straightforward: I am informed that the projected Second Quarter (Q2)
expenses for the Bureau are approximately $145 million. During my review of the ?nancial
condition of the Bureau, I learned that, as of the beginning of Fiscal Year (FY) 2018, the Bureau
had a balance in the Bureau of Consumer Financial Protection Fund (?Bureau Fund?) at the
Federal Reserve Bank of New York in the amount of $177.1 million. As the Act directs me to take
into account the unobligated FY 2017 balance brought forward by the Bureau into FY 2018, all of
which remains available in the Bureau Fund, I have determined that no additional funds are
necessary to carry out the authorities of the Bureau for FY 2018, Q2. Simply put, I have been
assured that the funds currently in the Bureau Fund are suf?cient for the Bureau to carry out its
statutory mandates for the next ?scal quarter while striving to be ef?cient, effective, and
accountable.

My understanding is that previous Bureau leadership opted to maintain a ?reserve fund? to
address possible ?nancial contingencies, although I know of no speci?c statutory authority
requiring the establishment or maintenance of such a reserve. Moreover, I see no practical reason
for such a large reserve, since I am informed that the Board has never denied a Bureau request for
funding and has always delivered requested funds in a timely fashion. It is my intent to spend

consumer?nance.gov

down the reserve until it is of a much smaller size, while still allowing the Bureau to successfully
perform its functions, before making an additional ?nancial request of the Board.

Finally, as net earnings of the Federal Reserve System are periodically remitted to the Treasury,
this request - or lack thereof - will serve to reduce the federal de?cit by the amount that the
Bureau might have requested under different leadership. While this approximately $145 million
may not make much of a dent in the de?cit, the men and women at the Bureau are proud to do
their part to be responsible stewards of taxpayer dollars.

 

MIC Mulvaney
Act' gDirector

cc: Ricardo Aguilera, Division Director and Chief Financial Of?cer, Board of Governors of the
Federal Reserve System

Donald Hammond, Chief Operating Of?cer, Board of Governors of the Federal Reserve
System

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