The CFPB can supervise nonbanks on 'reasonable cause' and publicly list firms that contest supervision, imposing reputational costs without proving a violation. This makes publicity a de facto enforcement tool outside normal rulemaking or adjudication. A proposed rule under Acting Director Russ Vought would curb this power.
— It shows how agencies can govern through reputational sanctions rather than formal process, raising due‑process and accountability concerns across the administrative state.
2025.10.08
86% relevant
Jarrett Dieterle highlights the CFPB’s long‑criticized practice of supervising nonbanks on a ‘reasonable cause’ basis and publicly signaling that supervision—then notes a new CFPB proposal to limit this power, directly mirroring the idea that reputational supervision needs statutory guardrails.
Jarrett Dieterle
2025.10.07
100% relevant
CFPB’s 2022 activation of nonbank supervision and its policy of publishing supervisory designations when firms push back (e.g., Google Pay, World Acceptance Corp.).
2024.12.11
72% relevant
The FOIA letters show the FDIC asked multiple banks in 2022 to 'pause all crypto asset-related activity' and copied the Fed, indicating reliance on supervisory pressure (and implied exams/audits) rather than formal rules—an instance of governance via supervision that can coerce without due process.