Since the inception of the Consumer Financial Protection Bureau in July 2011 as part of the Dodd-Frank Act, the financial services industry has watched as the Bureau has proposed a large number of regulations and created law by entering into consent decrees with financial institutions and a host of other creditors. There is no argument that the CFPB has radically changed the manner in which the financial services industry is regulated with its preferred method of legislating through consent decrees. Recently, however, it has been under scrutiny by each branch of the government because of what many see as its potential overreach in power. Recent case law, new bills and presidential executive orders are aimed at reining in the CFPB and its aggressive director, Richard Cordray.
Husch Blackwell’s Financial Services & Capital Markets team is watching these developments and advising clients on the effects of the potential changes. This particular alert addresses the recent executive order by President Trump to “dismantle” the Dodd-Frank Act and how the administration’s “Core Principles for Regulating the United States Financial System” are likely to pertain to providers of consumer financial services.