Todd Zywicki's remarks before the House Financial Services Committee primarily addresses the Obama Administration's proposal to create a new Consumer Financial Protection Agency (CFPA), which would have the authority to issue and enforce new regulations related to consumer lending products. This testimony notes that the CFPA is premised on a fundamental misunderstanding of the causes of the financial crisis. Essentially, there is no evidence that consumer ignorance was a substantial cause of the crisis or that the existence of a CFPA could have prevented the problems that occurred. This testimony provides a robust explanation of the financial crisis, and the negative unintended consequences that may ensue if a CFPA is established.