Regulators stress their balanced approach to fraud ID/punishment

A recent Wall Street Journal article duly notes that the Trump administration has taken some hits from consumer advocates. One chief complaint alleges its policy of pulling back on protective measures that guard against financial fraud via a clearly friendly business stance that undermines consumer safeguards.

A case in point: Critics charge that the Consumer Financial Protection Bureau created during the Obama presidency has been materially gutted as a clear concession to business powers.

That criticism is now being addressed, with it being especially spotlighted just like week pursuant to an announcement that a new task force has been created to target and take action against consumer fraud.

The initiative was spawned via an executive order signed by President Trump. The regulatory team comprises the CFPB, the U.S. Securities and Exchange Commission, the U.S. Department of Justice and additional agencies. The administration states that its creation underscores the government’s continued focus on fraud identification and enforcement.

The announcement comes with what is essentially “you can have both” labeling. The Journal piece notes the administration’s push concerning “punishment of bad actors even as it pursues deregulatory policies welcomed by the financial industry.”

As for the CFPB, it seemingly embraces the initiative in a keen way, given its expressed sensitivity to recent criticisms concerning its perceived loss of oversight, power and enforcement might.

Indeed, CFPB Acting Director Mick Mulvaney seems eager to get started with the task force’s agenda. He says that much adverse information circulating about agency weakness and ineffectiveness “is not accurate.”