Consumer Financial Protection Agency to Be Housed in the Fed
News out of the conference committee splitting the differences between the House and Senate versions of financial regulatory reform: The Consumer Financial Protection Agency, a new federal rule-making body charged with protecting the interests of consumers, will be housed inside the Federal Reserve. The House version of financial regulatory reform had the CFPA as an entirely independent agency.
Rep. Barney Frank (D-Mass.), the head of the conference committee, agreed to use the Senate provision on the CFPA and also offered a number of other amendments to the text, to be debated when the conferees convene tomorrow. These included a provision to ensure payday lenders, check cashers and private student lenders are subject to CFPA oversight — as well as certain exemptions for auto dealers and pawnbrokers.