What organization established the CFPB?

The Consumer Financial Protection Bureau (CFPB) was established by Congress through the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law in July 2010. The creation of the CFPB was a direct response to the financial crisis of 2007-2008, aiming to enhance consumer protection in the financial sector, ensuring that consumers have access to fair and transparent financial products and services.

The Dodd-Frank Act also aimed to strengthen regulation of the financial industry, but the specific impetus behind the CFPB was to address the lack of oversight and consumer protection that contributed to the financial crisis. The establishment of the CFPB marked a significant policy shift toward prioritizing consumer rights and holding financial institutions accountable. This organization operates independently within the Federal Reserve System but was specifically created via legislative action by Congress.

The other organizations mentioned, such as the Federal Reserve System and the Financial Industry Regulatory Authority (FINRA), play roles in the financial system but were not the bodies that created the CFPB. The National Association of Securities Dealers (NASD), now part of FINRA, also does not have a legislative role in establishing government agencies like the CFPB.