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Regulatory: The First New Regulatory Agency of the Obama Administration

The new financial regulatory reform law created the first significant regulatory agency of the Obama Presidency - the Consumer Financial Protection Bureau (CFPB).

The CFPB will be housed in and funded by the Federal Reserve Board, but will be completely independent of all other federal agencies. Two policy impulses led to its creation: (1) concern that the real estate market collapsed in part because many consumers had been misled into accepting subprime mortgages they could not afford; and (2) a general concern that consumer financial protection laws were ineffectual, because their disclosure-based approach was inadequate and because the bank regulatory agencies had treated their consumer protection responsibilities like an unwanted step-child.

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John Cooney

John F. Cooney is a partner in the Washington, D.C., office of Venable.

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