Big 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. According to CNN Money, expectations have led big business to appeal to the Obama administration with a "wish list" letter of hopes for how ongoing consumer finance regulation will unfold. While focusing on bank regulation is considered a top priority, the notion of the CFPB proposing new financial reform before confirming a director is unpopular.
Chances CFPB director can be Warren
Elizabeth Warren is a candidate to direct the Consumer Financial Protection Bureau as she, as an Obama administration advisor and Harvard University professor, came up with the idea. Warren is extremely for the consumer and against Wall Street though. This makes Sen. Christopher Dodd (D-Conn.), Dodd-Frank Wall Street Reform Act co-founder, think that she wouldn't be a good choice. 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.”
Request of big businesses
In order to keep away from burdensome or regulatory duplication, business groups are clamoring for the CFPB to approach banking and finance legislation with laser-like precision. 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 Consumer Financial Protection Bureau 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.”
The CFPB would be able to supervise all of the corporations besides financial institution with Dodd-Frank such as payday cash advance companies. 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.
Charge card business praise
Warren was happy with the credit card industry, reports Charge card Studio, because of their own measures taken to improve customer/credit card business relationships even though there’s a lot the mortgage industry still needs to do. 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.”
Articles cited
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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