Consumer Financial Protection Bureau Essay Example | Topics and Well Written Essays - 2000 words

Consumer Financial Protection Bureau - Essay Example It will illustrate the historical supposition of the Bureau creation, its main duties and responsibilities, the purpose for the Bureau, and the analysis of its operation. First, it is worth saying that a new consumer financial protection agency, the Consumer Financial Protection Bureau, was created to protect Americans’ personal finance transactions. It may seem that the creation of Bureau was a result of Congresss effort to reorganize the industry of banking thus preventing the possible economic crises in the future. In the article â€Å"Consumer agency will clarify financial products costs, terms† the interviewer and the advocate for creating the agency Elizabeth Warren, a Harvard law professor and chairwoman of the Congressional Oversight Panel, explained that the new Bureau would give a chance  to American families   to obtain financial security. First published in 2007 in the Democracy Journal, the idea of creating the new bureau described a feisty â€Å"Financial Product Safety Commission† whose agents would be known further to the Americans as firefighters (DePillis, 2011). The creation of the Bureau was called to rule governing consumer financial services and products that included mortgages and credit cards; it was also called to make loan terms and costs more transparent for the Americans. The agency would made credit cards and mortgages easy to follow, avoiding the fine print blurring of risk and cost. The agency was called to make the market more competitive; however, it was not aimed to facilitate the consumers in their purchase responsibilities and to make decisions on money (Mantell, 2010). Elizabeth Warren did not call the agency a â€Å"nanny†, but the force that will allow the market work again and will bring the transparency. In certain period, such transparency will allow penalty fees and charges to go down and credit products to become cheaper. The agency will measure the risk in the financial system, however, it will not ensure