CFPA Q&A: How Big Will The Bureau Be?

Big. The Dodd Frank Act created the Consumer Financial Protection Bureau ("Bureau"), which will have the responsibility for protecting consumers in the financial services area. The Bureau is an independent federal agency funded by the Federal Reserve Board.  While "big" could mean a lot of things, the best measure of the Bureau’s size at this early stage is to look at its funding. The Bureau’s initial budget is substantial, with the expectation of an initial budget around $550 million. To put the Bureau’s budget in perspective, it may be helpful to compare the budgets of some other large federal agencies. The Consumer Protection Safety Commission has an annual budget of $118 million. The Federal Trade Commission, which focuses on protecting consumers against unfair, deceptive or fraudulent marketing and advertising practices, had a 2009 budget of $281 million. The Equal Employment Opportunity Commission, which is expected to have a backlog of discrimination complaints in excess of 105,000 by the end of 2011, will have a 2011 budget of about $385 million. The Securities and Exchange Commission’s 2009 budget was $961 million.