posted 2010-07-28 1612 by masen
Our congress just passed the Financial Reform Bill on July 15th, establishing the Consumer Financial Protection Bureau. What's interesting to note however is in the following paragraph:
Independent Bureau Is Established. The Financial Reform Act creates the Bureau of Consumer Financial Protection, an independent bureau within the Federal Reserve System. Under the direction of a presidential appointee, the Bureau implements federal consumer financial laws through rulemaking, orders, policy statements, guidance and enforcement actions. Although it resides within the Federal Reserve System, the Bureau is autonomous: the Federal Reserve System's Board of Governors has no authority to review, approve, delay or prevent the issuance of any of the Bureau's rules or orders.
Why is this a part of the Federal Reserve? So the Fed can make sure that the bureau won't be able to interfere with the prevention of consumer fraud in the future?