Consumer and Investor Protection

A significant portion of the legislation is devoted to measures specifically intended to protect consumers and investors. Based on the belief held by some that lax consumer regulation—particularly with respect to retail mortgages—significantly contributed to the economic crisis, Congress has dramatically transformed the federal regulation of consumer financial services. The overhaul likely will usher in an era of increased substantive rulemaking and other supervisory controls, as well as increased federal and state enforcement and private civil litigation. During the financial crisis, many investors in stocks and other securities suffered devastating losses. Consequently, Congress has seen fit to respond with several new protections for investors and whistleblowers.