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Monday, May 12, 2014

CFPB’s Director Cordray Highlights Federal Oversight of Non-Bank Firms

Consumer Financial Protection Bureau Director Richard Cordray addressed the Federal Reserve Bank of Chicago on Friday, discussing the changes that have occurred since the 2008 financial crisis. Cordray discussed two significant changes in financial regulation after the creation of the Bureau: first, the weakened divide between chartered banks and other nonbank firms when it comes to federal oversight for compliance with consumer financial law; secondly, establishing safety and soundness regulations separate from consumer protection regulations.

Cordray also spoke of greater transparency regarding bank products, fees, and the risks involved with each product: “When consumers have the ability to compare between two financial products with knowledge of the true costs, actual benefits, and real risks, they will generally be better able to make decisions they can live with over time. And informed decision-making allows American consumers to drive the market toward products and services that meet genuine consumer preferences.”

Read the full speech.