News
New US financial watchdog launched
22 Jul 2011
The long-awaited Consumer Financial Protection Bureau
(CFPB) opened its doors on 21 July 2011 in the US. This new federal
agency was established under the 'Dodd-Frank' Act, which sought to
reform financial regulation in the aftermath of the global financial
crisis.
As is still the case in many countries, responsibility for
regulating financial services was spread across
a number of different agencies. This will now be brought under one
roof with the creation of the CFPB, in a move welcomed by many
including
Consumers Union, CI's member in the US.
Interactive CFPB graphic
The Bureau's full mandate,
enforcement powers and potential are nicely summarised in this graphic of CFPB by CNN.
Controversy
The process leading up to the launch of the CFPB has not been
without considerable controversy. Hostile legislators and Wall
Street lobbyists have been fighting hard to undermine the fledgling
agency its powers. This included blocking the appointment of
Elizabeth Warren, President Obama's choice to lead an agency that
was her brain-child, and which she has been at the forefront of
setting up.
US consumer groups are now pushing for a speedy confirmation of
Richard Cordray, President Obama's nominee for Director of the
CFPB, so that the CFPB can be fully operational and realise its
full powers to protect financial-services consumers.
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