President Donald Trump’s administration is likely to seek taxpayer dollars to cover the costs of commercial banking on the Federal Reserve’s books, according to a report from the watchdog group Common Cause.
The bank commercial banking program, set to be implemented this year, has drawn criticism from the consumer advocacy group, Consumer Financial Protection Bureau, because of the potential for abuses of bank employees.
The CFPB also has raised concerns about how it will be used to finance the new commercial banking industry.
The agency will be required to disclose how it plans to use taxpayer dollars for such activities, and whether it will use taxpayer funds for anything other than commercial banking.
The administration has so far resisted those questions.
The Office of Management and Budget, which administers the commercial banking programs, said in a statement that the money would not be used for commercial banking “at this time.”
The program has drawn scrutiny because of how it is set up, with the government requiring banks to use the money to finance their own commercial banking activities.
It has also drawn criticism because the money will not be available for the purpose of making loans or making loans to other banks.
The administration said the new program will not use taxpayer money for any of those purposes.
The Consumer Financial Protect Bureau, which is in charge of consumer financial protections, said it is “confident” the new bank commercial bank programs will be legal and effective.
The bureau, which has been conducting a study of commercial banks’ operations and regulatory compliance since 2010, released a report last year calling for the government to use more taxpayer funds to help finance the commercial bank market.
The agency estimated that the new business models could cost the federal government as much as $3.4 trillion over 10 years, including interest payments.
The consumer bureau also called for the Treasury Department to provide more information about the bank commercial banks to the public and to the Federal Deposit Insurance Corp. for a report on how the government intends to use its taxpayer funds.
A spokesman for Treasury said the department would “continue to review the proposal” and would respond to the CFPBA.