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Do you think CFPB is neccesary?

Consumer Financial Protection Bureau, plans to crack down on "unfair, deceptive, or abusive acts" by mortgage companies and other lenders.
The bureau, arguably the most innovative of the reforms, has been under constant attack by banks — and Republicans.
Why do you think consumer protection would get them so rattled?

 
CHarlan

Asked by CHarlan at 11:58 PM on Mar. 28, 2011 in Politics & Current Events

Level 17 (3,275 Credits)
This question is closed.
Answers (6)
  • Because the banks and financial industry in general hate anything that smells of regulation. They did very well for awhile making huge profits until the whole edifice collapsed under a mountain of worthless debt and had to be bailed out by the taxpayer, and not for the first time . The government should stand firm with no bailouts for ' casino' investment banks and insist these banks be incorporated separately from regular banking activities whose cash reserves should be substantially increased .

    The industry wants to revert to its bad old ways and is already doing so . Bundled mortgages are now being sold again, the process known as securitisation, the amazing thing is that investment banks are willing to buy them . Here we go again .
    janet116

    Answer by janet116 at 1:22 AM on Mar. 29, 2011

  • Why do you think consumer protection would get them so rattled?

    Because the last time we had "consumer protection" the government engineered the groundwork for the housing bust (see Fannie and Freddie and the everyone deserves a house programs)
    NotPanicking

    Answer by NotPanicking at 12:01 AM on Mar. 29, 2011

  • Well, it's obvious to me. When you over regulate it hurts no one but the consumer. With Credit card regulations we got nothing but higher interest rates crammed in before the law went into effect. (they can still charge you for not paying the bill)With health care, we got higher premiums and lost coverage. With banking regulations we are getting new charges and more red tape. Did you know the government will not let you transfer money from savings to checking more than 6 times in a month so the banks will have money available if the bank fails. How they figure that works I don't know but that's proof government groups like this are ridiculous.
    itsmesteph11

    Answer by itsmesteph11 at 9:02 AM on Mar. 29, 2011

  • I can't believe some of you are still blaming the banks for all this mess. They most certainly deserve part of it, but the lions share goes to the legislators that decided banks should be required to give loans even if people weren't worthy of the credit..even if people had debt..even if people had little or no down payment. They compounded this problem by keeping interest rates low.

    Of course banks are bundling. They have to. If they don't they can only give mortgages with the cash they have on hand. This would lock most small banks out altogether. Buying mortgages can be a good investment IF it is the banks deciding who is credit worthy..not the govt.

    This is one of the govt groups that needs to GO. The govt has to get its fingers out of private enterprise...they ruin everything they touch.
    yourspecialkid

    Answer by yourspecialkid at 11:10 AM on Mar. 29, 2011

  • Ummm gert, you left out the regulating of the Clinton administration that put all of this in motion.

    yourspecialkid

    Answer by yourspecialkid at 2:23 PM on Mar. 29, 2011

  • Regulating helps the Consumer. Back in the 80's, the Reagan administratuion started de-regulating and it all came to an ugly concliusion in 2007-2008 when Wall Street screwed us all and by 2008,the fall..October---we all lost investments and homes started going into foreclosure after a few years of missed payments.
    minnesotanice

    Answer by minnesotanice at 1:42 PM on Mar. 29, 2011

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