From: The National Law Journal
Bureau asserts power to reform financial industry without resorting to formal rulemaking.
John Van De Weert and Maria Earley, The National Law Journal
Nearly five years have passed since the Consumer Financial Protection Bureau was created with a core mission of protecting consumers. In that time, the Office of Enforcement has played a prominent and aggressive role, bringing a number of highly publicized cases resulting in substantial settlements. Because of the CFPB’s broad powers and aggressive posture, and because institutions are justifiably concerned about litigating with their regulators, most cases have been settled rather than litigated. The CFPB’s public actions have effectively blurred the lines between enforcement and regulation by prompting industry change without the need for formal rulemaking.