U.S. consumer watchdog takes aim at repeat corporate wrongdoing -Breaking
WASHINGTON (Reuters] – The U.S. Consumer Financial Protection Bureau, or CFPB, plans to set up “dedicated units,” within its enforcement/supervision divisions to help detect repeated corporate offenders. This was announced by the director on Monday.
Rohit Chopra, who became CFPB director on October 1, made his first address about enforcement policy. He stated that regulators had failed to enforce the same standards for large institutions as smaller ones.
At a University of Pennsylvania event, he stated that “structural remedies” are being considered by the bureau to help hold large companies accountable for their repeated misconduct. He mentioned this at an University of Pennsylvania law school event.
Democrats have long complained that regulators are too dependent on corporate misconduct being punished, which is what large businesses often consider a cost to doing business. Chopra agreed with this view on Monday.
Chopra stated that headline-driven sanctions can deter and even appear to be effective for powerful, dominant firms.
Critics argue that regulators have not been willing to clamp down on smaller companies and sometimes even shut them down altogether, but they were reluctant to confront large corporations and the hordes upon of high-paid lawyers.
To combat corporate recidivism, President Joe Biden has identified it as his top priority. The Justice Department released a set of policy modifications last year that aimed to better prevent repeat misconduct.
Chopra stated that the CFPB will increase collaboration with state licensing officers so states can more accurately determine whether a company’s licenses for business should be suspended, or whether it should liquidate its assets.
Chopra stated that “Regulators from the U.S. are able to terminate licenses and charters.” “This should be considered in today’s world for all institutions, regardless of whether or not it is a small business.
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