Becoming Human

The Consumer Financial Protection Bureau November 19, 2010

Having dozens of federal agencies responsible for various aspects of consumer financial protection may not have caused the financial crisis, but it doesn’t make either consumers or lenders happy.  The Dodd-Frank Wall Street and Consumer Protection Act authorized the creation of a single agency to be responsible for all, or almost all, consumer financial protection, the Consumer Financial Protection Bureau.  It’s the thought that counts, right?  Well, it may be a good idea to consolidate responsibility into one agency, but to use another cliche, the proof is in the pudding. President Obama appointed Harvard law professor Elizabeth Warren to set up the agency, which makes sense since she advised him on its creation.  Certainly she is busy organizing it and setting policy for the new agency, but it won’t become fully functional until July 21, 2011 when the other agencies transfer their power to the Bureau.

For an overview of the Bureau and its responsibilities see my article at Lawserver.com.