Transition of power from
Transition of power
Transition of power
Prom
Backed by
It is unlikely that the Consumer Financial Protection Bureau will be abolished by Republicans, but there are significant changes expected to be made to its regulations and operations.
Authored by Emily Flitter and Madeleine Ngo.
In his remaining time as director of the Consumer Financial Protection Bureau, Rohit Chopra is highlighting to banks and other financial industry organizations that there are positive aspects about the regulator that they may appreciate, despite their usual criticism towards it.
In recent weeks, the bureau has introduced numerous new regulations and proposals aimed at overseeing payment services offered by large technology companies and controlling the selling of consumers’ private information. These regulations have been well-received by financial industry organizations and critics of Mr. Chopra’s leadership at the agency.
Before Republicans take control of Washington again and potentially target the consumer agency, more acceptable regulations are being introduced. Republicans have consistently attempted to weaken the agency’s authority and freedom. In addition, banks have filed lawsuits disputing rules implemented under Mr. Chopra’s leadership.
Isaac Boltansky, an analyst at brokerage firm BTIG, mentioned that the recent rulemakings in the financial regulatory system are meant to demonstrate bipartisan agreement and validate the role of the C.F.P.B. in the regulatory ecosystem.
The recent actions taken by the bureau may reduce some of the strong resentment from financial industry representatives, which has increased during Mr. Chopra’s time in office. These actions could also cause divisions between different factions within the industry, making it challenging for officials to completely remove certain rules or shut down the agency.
One example is how influential banks have supported the consumer bureau’s decision to monitor the payment services provided by large tech companies to customers. Banks have consistently maintained that if they are required to adhere to strict regulations, then tech companies offering similar services should also be regulated. If the consumer bureau was not able to enforce these regulations, it could potentially harm banks’ competitiveness.
We are currently experiencing difficulties in accessing the content of the article.
Kindly activate JavaScript in your browser’s settings.
We appreciate your understanding as we confirm your access. If you’re currently in Reader mode, please log out and sign in to your Times account, or consider subscribing for full access to The Times.
We appreciate your understanding as we confirm your access.
Have you already signed up? Please enter your login information.
Interested in accessing all content from The Times? Sign up for a
Prom
Index of the website
Navigation for site information
