State financial regulators no longer have to tell the feds when they sue a bank

The Consumer Financial Protection Bureau (CFPB) has removed a rule that required state officials to notify the agency when they took enforcement action against a financial company. This means state regulators can now pursue cases against banks and other financial firms without federal oversight or coordination.

For years, the CFPB required state regulators to report their enforcement actions, which gave the federal agency a clear picture of how states were policing financial companies. This rule change means the CFPB will now have less visibility into state-level enforcement. It could lead to less coordinated action against financial firms, or it could allow states to act more quickly without federal delays.