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CFPB Director: Shadow Banking System Didn’t Work

Mortgage News

Much of the blame for the financial crisis can be ascribed to financial service providers who were not regulated, according to the new director of the Consumer Financial Protection Bureau.

Richard Cordray told CNBC that bankers support the supervision of non-bank lenders.

“What we found in my discussions with bankers thus far, they’re very interested in our new effort to level the playing field between banks and non-banks because non-bank firms in the mortgage markets really destroyed any kind of standards, any kind of fair competition in the lead-up to the financial crisis and helped cause that crisis,” Cordray said in a television interview last week.

The new director dismissed concerns about the controversial nature of his back-door appointment, noting that consumers needed a director in place.

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