There are conflicting opinions on this one, so I will post articles that reflect those viewpoints, for this week’s discussion — and thereafter.
There are conflicting opinions on this one, so I will post articles that reflect those viewpoints, for this week’s discussion — and thereafter.
Dodd-Frank is expansive and confusing. It contains many different sections. It’s affects are being seen all over the financial services industry. Here, I want to focus on one small part of Dodd-Frank. Dodd-Frank created the Consumer Financial Protection Bureau (CFPB). The CFPB is the federal agency that holds primary responsibility for regulating consumer protection with regards to financial products and services in the US. The new BCFP will act as an independent bureau within the Federal Reserve with authority over any person offering or providing a financial product or service to a consumer. Nobody seems to know how far this power extends, but members in the financial services industry are clearly not happy with having to answer to another government regulator. This is yet another example of the federal government expanding its reach and spending more taxpayer dollars. The CFPB appears to be another public publicity move by the federal government to try to demonstrate to the public that it is cleaning up Wall Street.
Here is an interesting article that I found: http://articles.latimes.com/2012/jun/22/business/la-fi-mo-consumer-bureau-lawsuit-20120622
This article argues that the CFPB was given too much power and that President Obama’s recess appointment of Richard Cordray as its director was unconstitutional.