Possible new consumer watchdog agency

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.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu, or Michael Salinger, 617-353-4408, salinger@bu.edu

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