“Regulatory capture” refers to a form of government failure in which a regulatory agency reflects the interests of the institutions it was intended to regulate rather than those of the public. How long does it take for a regulatory agency to be captured? As fast as this, reports the Daily Caller:
Three of the top four officials at the Consumer Financial Protection Bureau have jumped from CFPB to lucrative posts representing financial services industry firms their former agency regulates, according to a Daily Caller News Foundation investigation.
The latest of the departures is Quyen Truong, formerly deputy general counsel, who accepted a position this month with the law firm Stroock & Stroock & Lavan.
Truong’s new law firm represents banks such as Citigroup, Bank of America Merill Lynch, Barclays Capital, Credit Suisse and Deutsch Bank. The company also assists high-flying hedge funds including Carlyle Group, JP Morgan Asset Management and Goldman Sachs, according to its website.
Truong was preceded out the door by her former boss at CFPB, General Counsel Meredith Fuchs, who left in February to join Capital One.
The CFPB was formed in 2010 as part of the Dodd-Frank Wall Street reform bill.
A more cynical man than I might be tempted to think that rather than protecting the interests of consumers the CFPB was created to be yet another venue for placing party apparatchiks in lucrative financial sector jobs.