This proposed regulatory change will undoubtedly have a
wide-ranging impact on financial markets nationwide.
On January 10, 2019, California Governor Gavin Newsom proposed a
plan to create a California version of the federal Consumer
Financial Protection Bureau ("CFPB") as part of the
state's proposed 2020-21 budget. According to the budget
summary, this mini-CFPB is necessary because the federal
government's rollback of regulations "leaves Californians
vulnerable to predatory businesses and leaves companies without the
clarity they need to innovate." In his announcement, Newsom
declared that "California is filling the void and stepping up
to protect families and consumers."
A handful of states have created similar mini-CFPBs, some of
which sit within the office of the state's attorney general and
some of which are stand-alone agencies. California's would be
more similar to the latter. The proposed mini-CFPB would replace
the now-existing California Department of
