Its success will depend on whether it can appropriately identify those institutions exploiting those gaps and bring them into accepted standards of behavior. If the new bureau merely directs its resources to the already heavily regulated community banks, its beneficial effects will be minor. A targeted implementation program is critical if the consumer is to experience the hoped-for benefits.
The legislation primarily hoped to address the public’s concerns about too-big-to-fail institutions – that is, those that are so large and interconnected that they will be bailed out by taxpayers no matter what risks and bad decisions they make because they are too “systemically important” to be allowed to fail.