The Consumer Financial Protection Bureau (CFPB) said Monday it’s tapping a mostly unused legal provision to examine nonbank financial companies that pose risks to consumers. “The CFPB believes that utilizing this dormant authority will help protect consumers and level the playing field between banks and nonbanks,” it said in a prepared statement. The CFPB is also seeking public comments on a procedural rule to make the examination process more transparent. CFPB director Rohit Chopra said the CFPB is tapping an authority it received under the Dodd-Frank legislation to use traditional law enforcement to prevent companies from posing risks to consumers. “This authority gives us critical agility to move as quickly as the market, allowing us to conduct examinations of financial companies posing risks to consumers and stop harm before it spreads,” Chopra said. The Financial Select Sector SPDR ETF is down 7.8% in 2022, compared to drop of 10.6% by the S&P 500 .
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