News & Resources

New chief could be named for CFPB

Jan 24, 2011 Brian Bradley

The Consumer Financial Protection Bureau is still without an agency chief six months after Congress created it, reports The New York Times. The organization was formed to better regulate the lending industry. Americans for Financial Reform, a collection of consumer advocates, praised the formation of the organization as "significant progress," but called on the White House to appoint a director of the agency. The bureau is currently led by Elizabeth Warren on an interim basis. Warren cannot fill the role permanently, as she was appointed an official in the Treasury Department. According to the Times, a leader is needed before the bureau becomes an independent agency within the Federal Reserve on July 21, when the bureau's every move will be scrutinized by government officials and special interest groups. Without a chief, the CFPB will lack the authority to supervise nonbank lenders that offer nontraditional credit, such as short term loans, reports the Huffington Post. The goal of the CFPB, says the news source, is to level the playing field between banks and nonbanks when it comes to government oversight and regulation. Those in the nontraditional loan business hope that the new director will be more relaxed when it comes to oversight, while consumer advocates are pushing for a more aggressive regulator, writes the Post.