California Reportedly Launching Its Own CFPB
January 9, 2020
California already has one of the most active state agencies in terms of regulating and (when necessary) punishing the financial services industry: the California Department of Business Oversight.
But the state could soon have a financial regulator that rivals the New York Department of Financial Services in terms of clout, reach, and scope.
On Friday, California Gov. Gavin Newsom will reportedly unveil a plan for the state to enact its own version of the Consumer Financial Protection Bureau, overhauling and increasing the power of the state’s Department of Business Oversight.
According to a report from the Los Angeles Times, the proposal to create a state-level CFPB will come in Newsom’s 2020-2021 budget, which Newsom is scheduled to reveal Friday.
Gov. Gavin Newsom will unveil a California Consumer Financial Protection Law as part of his proposed 2020-21 state budget, to be introduced Friday.
“As the Trump administration undermines and weakens the rules that protect consumers from predatory businesses, California is filling the void and stepping up to protect families and consumers,” he told me via email.
According to materials shared with me by the governor’s office, the proposed California Consumer Financial Protection Law would overhaul the existing Department of Business Oversight and rename it the Department of Financial Protection and Innovation, or DFPI.
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