Thursday, April 7, 2011

Consumer Financial Protection Bureau (CFPB)

As of April 6th, Pres. Obama was still reviewing names to run the CFPB. Those following the formation of the CFPB know that Professor Elizabeth Warren has been its chief architect. When testifying before the House Subcommittee on Financial Institutions and the Consumer Committee on Financial Services, Warren indicated that private loan companies would be held accountable for wrongdoing and failure to comply with federal laws and regulations. That is encouraging news for the indentured educated class!

Perhaps it is a failure on my part (i.e. as a researcher), but there seems to be scant information on the way in which the CFPB will handle private loan companies. I do know one thing, there needs to be a private loan ombudsman at the CFPB. I hope that this fledgling agency does not look to hire from the same circles. There needs to be new blood, and I am especially interested in how they will oversee private student loan companies. So, here are my questions: what's the status on hiring there? Who's doing the hiring? Will there be an entire division devoted to private loans? From my understanding, it appears that the operations are coming out of the Treasury Department, but that is the most I have gathered.

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