If the CFPB Goes Away, What Happens to Its Authorities?

Eric Mogilnicki’s commentary was included in an American Banker article analyzing whether prudential regulators, state attorneys general, and state banking agencies will be able to give consumers similar protections in the absence of a full-force Consumer Financial Protection Bureau (CFPB).

"What's been happening is that the policy pendulum has been swinging wildly for the CFPB's entire life," Eric pointed out. "The whole rationale for the CFPB was to consolidate consumer protection in an agency apart from the prudential regulators."

Eric compared the current FTC leadership to former CFPB Director Kathy Kraninger, who filed a large number of lawsuits focused on intentional fraud and refrained from chasing what he called "good faith mistakes by financial institutions." "Both Chair Andrew Ferguson and Bureau Director Chris Mufarrige are committed to consumer protection," he said.