Large business has July 21, 2011, circled in the calendar. That’s the day the Consumer Financial Protection Bureau (CFPB) will officially be the United States consumer finance regulatory board of the land. The impending change recently prompted business groups to send the Obama administration a “wish list” letter that expresses what they think the CFPB should do first, states CNN Money. Regulating banks sits atop the list, however waiting on consumer finance reform until the smoke clears at the director confirmation listening to is not far behind. Resource for this article – Big businesses present wish list for consumer finance regulation by MoneyBlogNewz.
Chances Consumer Financial Protection Bureau director will be Warren
Harvard University professor and Obama administration adviser Elizabeth Warren initially conceived the idea for the Consumer Financial Protection Bureau, and she has been considered the most likely candidate to direct the bureau. She might not get picked though, Sen. Christopher Dodd (D-Conn.), co-founder of Dodd-Frank Wall Street Reform Act, explained since she is very against Wall Street and very much for the consumer. Warren has had to meet bank executives, lobbyists, chambers of commerce, consumer groups and investors while getting the agency staffed even though this is the case.
“They were wary, but polite, and quite surprised,” Warren said Monday of the meetings. “Some were sure I’d walk in with blood dripping from my fangs.”
Getting businesses what they want
Regulation duplication needs to be avoided, business groups explain. This is why the CFPB is being told to be very careful about how it goes about banking and finance legislation. Already Dodd-Frank is too ambiguous, Jess Sharp told CNN as the director of the United States Chamber of commerce Center for Capital Markets Competitiveness. The CFPB must do more.
“Targeted regulation to weed out bad actors is good for consumers, but there’s huge and ambiguous authority granted under Dodd-Frank,” Sharp said. “That can lead to huge regulatory burdens for Main Street businesses.”
Short term personal loan businesses and others that are not traditional banks would be supervised by the Consumer Financial Protection Bureau. That is what the Dodd-Frank would do. The Obama administration got a letter from business groups though. Obviously they do not like this idea.
“Deferring an expansion of supervision and examination requirements would allow businesses to devote resources to job creation rather than save them to cover what might well be unnecessary regulatory compliance costs,” the letter reads.
Warren's comments for charge card companies
Getting better is something the U.S. mortgage industry nevertheless needs to work really hard on. Credit card Studio reports the credit card industry was praised by Warren though for working on consumer relationships by themselves. Regulations from CFPB are probably not needed. This was another thing mentioned.
“The data we have assembled indicates that much of the industry has gone further than the law requires in curbing repricing and over-limit fees,” Warren said. “Leaders in the industry deserve credit for moving in the right direction.”
Citations
Advisor One
advisorone.com/article/deputy-secretary-wolin-outlines-treasurys-steps-implementing-dodd-frank?page=0,1
CNN
money.cnn.com/2011/03/01/news/economy/chamber_consumer_bureau/
Credit Card Studio
creditcardsstudio.com/news-article/the-card-act-one-year-later/
The CFPB: Arresting the development of a new financial meltdown
youtube.com/watch?v=1V0Ax9OIc84
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