American Banker debunks four “big” myths about the CFPB today. Quick highlight:

Myth No. 1: The CFPB is the most powerful agency to ever exist.

“… the bureau doesn’t exactly have a blank check to do what it wants. Dodd-Frank includes some unique requirements that other banking regulators do not face, including that it must consider the potential costs and benefits of any new rule to both consumers and providers, and must consider the impact of proposed rules on community banks and smaller credit unions, and on consumers in rural areas. It’s worth noting that it must, like other federal agencies, comply with the Administrative Procedures Act, which requires regulators to allow the public to comment on any rule before it is finalized.”

Myth No. 2: CFPB has virtually unchecked authority.

… “Under Dodd-Frank, the Financial Stability Oversight Council can overturn the CFPB’s rules by a two-thirds vote. Democrats, correctly, point out that no other regulator is subject to such an override, implying it is a significant check on the agency’s authority.

But it’s an open question whether the FSOC would ever really use such power. It requires a two-third vote by the council — with one of the 10 votes held by the director of the CFPB. While not an impossibly high bar — after all, the Senate meets the threshold on a regular basis — it is designed to make it hard to override the CFPB.”

Myth No. 3: CFPB is not subject to congressional oversight.

… “unlike any other banking regulator, the CFPB will be subject to an audit by the Government Accountability Office, which will present its findings to Congress. Congress also has the power to overturn regulations through the Congressional Review Act.”

Myth No. 4: CFPB has unparalleled budget authority.

… “Unlike other bank regulators, however, the CFPB is not funded by exam fees but by a fellow regulator. Under Dodd-Frank, it can pull as much as 10% from the Fed’s budget. While a large sum, it’s important to note that it isn’t, as some critics would claim, unlimited. For this year, the CFPB has a budget of $142.8 million, and has requested $329 million for fiscal 2012.”