US consumer watchdog rolls back its power to supervise financial companies

The US consumer watchdog is making it harder for itself to bring non-bank financial companies under its direct supervision. This means fewer financial companies will face the agency's direct oversight and audits.

The US consumer watchdog, the CFPB, had made it easier for itself to supervise non-bank financial companies. This meant more companies could be brought under scrutiny. Now, the agency is reverting to an older, more cumbersome process, which means it will supervise fewer companies. This reduces the regulatory burden on some parts of the financial industry.