CFPA, which has been fought furiously by banks and credit card companies, will establish an independent executive branch agency to regulate the provision of consumer financial services and products.   

It will incorporate the consumer protection functions of the Federal Reserve, the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, Office of Comptroller of the Currency, the Federal Trade Commission and the National Credit Union Administration.  Many of these regulators have been faulted for a lack of oversight of financial institutions prior to last year's financial collapse.

The bill passed the house with a compromise on two major points.  Many legislators with ties to the banking industry had pushed for the legislation to preempt all state regulations which are often stronger or more forcefully pursued by local authorities.  The Obama Administration had strongly fought this preemption, wanting the states to retain full enforcement authority.  Instead the bill will authorize the Office of the Comptroller of the Currency which regulates national banks to intervene only if it found that state law "significantly" interfered with federal policies.

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