Three Problematic Truths About the Consumer Financial Protection Agency Act of 2009

By Todd Zywicki on March 17, 2011

In Three Problematic Truths About the Consumer Financial Protection Agency Act of 2009 (George Mason University Law and Economics Research Paper Series, 2009) Dr. Joshua D. Wright and Dr. Todd Zywicki, Director at Global Economics Group, highlight three fundamental problems with the Consumer Financial Protection Agency: 1) The CFPA is premised on a flawed understanding of the financial crisis, 2) the CFPA will have significant unintended consequences such as reducing competition, consumer choice and availability of credit, and 3) the CFPA creates a powerful bureaucracy with undefined scope, risking expensive and wasteful regulatory overlap at both the federal and state levels without any evidence of its own expertise in the core areas it is designed to regulate. Three Problematic Truths About the Consumer Financial Protection Agency Act of 2009