May 03, 2019

American Banker Quotes Gerry Sachs on Consumer Financial Protection Bureau’s Focus on Supervision Instead of Enforcement

1 min

On April 29, 2019, Gerry Sachs was quoted in American Banker on Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger's decision to refocus on supervision instead of the enforcement actions, large fines, and public shaming that were the hallmark of her Obama-appointed predecessor.

According to the article, a stronger focus on supervision could benefit consumers more than enforcement in certain cases, but civil fines will continue to plummet, and a more private process for resolving regulatory matters instead of public disclosure of transgressions may let companies off the hook.

"You might see change come about more quickly through supervision than years of litigation," said Sachs, a former CFPB senior counsel for enforcement policy and strategy. "The question is, will the CFPB be able to focus on confidential supervisory processes and procedures while also avoiding the pitfalls of regulatory capture. That has yet to be determined."