Reports say the Obama administration is considering creating a new regulatory agency to protect consumers of a wide variety of financial products ranging from mortgages to hedge funds. School of Law Professor Cornelius Hurley, a proponent of regulatory streamlining who directs the Morin Center for Banking and Financial Law, can comment on the implications.
Meantime, School of Management Professor Michael Salinger, a former Federal Trade Commission director, is skeptical. “One of the risks of creating a regulatory authority for a single industry is that it ends up being captured by the industry,” he said. “A better solution would be to expand the staff of the FTC.”