Is the consumer financial protection bureau (cfpb) a necessary regulatory agency?

Arthur e. wilmarth, jr., from "the financial services industry’s misguided quest to undermine the consumer financial protection bureau", review of banking & financial law (2012). no: todd j. zywicki, from "the consumer financial protection bureau: savior or menace?", george mason university law and economics research paper series (2013). arthur wilmarth, a professor of law at george washington university’s college of law, argues that the dodd-frank wall street reform and consumer protection act (cfpb) was created to protect consumers from fraudulent activities within the financial services industry. it was established with autonomy in order to insulate it from political and lobbying pressures that have been evident in the current federal regulatory agencies. the effects of the catastrophic crash of 2008 on wall street are still felt by many consumers. many of the problems were caused by the mortgage industry, the investment banking industry, and the insurance industry. after extensive bailout from the american taxpayers, the bureau was put in place to maintain financial protection and safety for consumers.

todd zywicki, a professor of law at george mason university school of law, claims that the consumer financial protection bureau (cfpb) is not necessary because several federal agencies are already doing the work of the cfpb. the bureau has extensive autonomy, which can endanger the financial industry’s progress and profits through excessive regulation and reform. he argues that the 2010 dodd-frank consumer financial protection act can function well with the existing federal agencies.

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