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Australia Needs an Administrative Procedure Act
In the United States, there is an intellectual movement going on the likes of which have not been seen in nearly a century. The administrative…
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Commonsense New Debt Collection Rule from Consumer Financial Protection Bureau
The Fair Debt Collection Practices Act (FDCPA) was passed in 1977, over forty years ago, at a time when telecommunication technology was in its infancy…
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Overhaul Internal Operations at Consumer Financial Protection Bureau
One of the most important, yet least visible, changes a new Consumer Financial Protection Bureau director could make is to reform the internal operations of…
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Regulators Should Foster Financial Innovation
It is becoming increasingly apparent that financial technology, or “fintech,” like other forms of technology, can drastically improve consumers’ lives. Yet one of the most…
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Consumer Financial Protection Bureau Should Acknowledge Its Unconstitutional Structure
The Consumer Financial Protection Bureau’s structure is unconstitutional. The agency’s leadership should recognize it as such.
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Consumer Financial Protection Bureau Should Define ‘Abusive’
The Dodd–Frank Act was a mammoth overhaul of financial services regulation. Along with creating an entire new consumer protection agency, the Consumer Financial Protection Bureau,…
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Prevent Another Mortgage Crisis: Let Qualified Mortgage ‘Patch’ Expire
Last month, the Consumer Financial Protection Bureau released its rulemaking agenda for Spring 2019. While there weren’t too many surprises in the agenda, which mainly…
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Consumer Financial Protection Bureau Should Drop Flawed Enforcement Actions
While the Consumer Financial Protection Bureau’s role in enforcing consumer protection laws is important, there are times when it oversteps the mark and brings frivolous…
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Narrowly Address Fair Lending Requirements to Spare Impact on Small Business
Section 1071 of the Dodd-Frank Act amended the Equal Credit Opportunity Act to require financial institutions to collect, report, and make public certain information concerning…
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Reform Fair Lending Laws to Uphold Rule of Law
The CFPB’s new director, Kathleen Kraninger, assured the Senate Banking Committee in her confirmation hearing that she was committed to upholding the rule of law.
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Regulators Should Rescind ‘Small-Dollar’ Loan Rule
The Consumer Financial Protection Bureau is one of the most controversial regulators in Washington, D.C. Since its founding in 2010 under the Dodd-Frank Wall Street…
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Credit Card Interest Cap Would Create Consumer Credit Bread Lines
Last Thursday Rep. Alexandria Ocasio-Cortez (D-NY), and Sen. Bernie Sanders (I-VT) teamed up to introduce a bill that only two democratic socialists could have dreamed up.
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Good and Bad of Government’s Debt Collection Proposal
Earlier this month, the Consumer Financial Protection Bureau released a much-anticipated proposal to revamp the Fair Debt Collection Practices Act (FDCPA), a forty-two year old…
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Australian Government Tempts Mortgage Crisis
It seems that Australia’s political parties are suffering from collective amnesia. After spending the earlier half of the year criticizing banks for abrogating their responsible…
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The Economic Illiteracy of a 36 Percent Interest Rate Cap
Earlier this week, the House Financial Services Committee held a hearing on a draft bill that proposes to set a national 36 percent annual percentage…
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Will Reforming Consumer Finance Regulation Cause a Recession?
Will reforming consumer finance regulation cause a recession? That is the claim of a recent article in The Hill. Yet, the article provides little evidence to…
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CEI Leads Coalition Supporting Reformed Payday Loan Rule
Today, the Competitive Enterprise Institute led a coalition of eighteen free market organizations in support of the Consumer Financial Protection Bureau’s decision to rescind portions of…
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Reformed Consumer Financial Protection Bureau Can Be Free-Market Regulator
Earlier this week, The New York Times Magazine rolled out another edition of the tired old trope of how former acting Director Mick Mulvaney “destroyed”…
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Restrictions on Debt Collection Impede Access to Credit
In a market economy that is based on private property and the rule of law, the efficient and effective enforcement of contracts is indispensable. Without…
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Bank Regulators Must Correct Flawed Volcker Rule Proposal
As my colleague Devin Watkins discussed earlier this month, a number of federal administrative agencies are refusing to correctly implement a crucial piece of regulatory…
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Fintech and the Future of Consumer Finance
Everyone understands the need for access to credit. No matter how well we budget, we occasionally come up short due to an unexpected circumstance or expense—a…
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Financial Services ‘Regulatory Sandbox’ Is Win for Consumers
The comment period on a critical new initiative to promote innovation in financial services from the Consumer Financial Protection Bureau closed this Monday. My colleague…
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Fintech: A Bipartisan Priority for the 116th Congress
While the 115th Congress did not achieve all that was hoped for with regards to financial services reform, it did make important progress to achieving…
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Agenda for the 116th Congress: Banking and Finance
Perhaps one of the most under-appreciated aspects of our modern world is the fact that finance is fundamental to the operation of a free and…
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Year in Review 2018: Consumer Financial Protection
2018 was a big year for the Consumer Financial Protection Bureau (also known, for a while, as the Bureau of Consumer Financial Protection). The past year…
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Five Priorities for New BCFP Director
Kathleen Kraninger was confirmed as director of the Bureau of Consumer Financial Protection. She has promised to implement a free market reform agenda, focusing on…
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Senate Democrats’ Report Misses Mark on Mulvaney
While President Trump’s nominee to head the Bureau of Consumer Financial Protection, Kathleen Kraninger, awaits a final confirmation vote in the Senate, Senate Democrats have…
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Bureau of Consumer Financial Protection Needs to Rewrite Payday Loan Rule
Last week, I wrote a blog post on how the Bureau of Consumer Financial Protection could go about narrowly rewriting the payday loan rule. This would…
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What Do the Midterms Mean for Financial Services?
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How to Rewrite the Payday Loan Rule
Last Friday, the Bureau of Consumer Financial Protection announced that it will be reconsidering its’ controversial Payday, Vehicle Title, and High-Cost Installment Loan rule.
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Promise and Pitfalls of Treasury Fintech Report
July 31st, 2018, was one of the most exciting days for financial technology regulation in recent memory. Around 10 a.m. that morning was when the…
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The Financial Crisis 10 Years Later: What’s Changed?
Ten years ago, the United States plunged into a financial crisis that would bring the world economy to the brink of collapse. The housing bubble…
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The Financial Crisis 10 Years Later: Restrictions on Housing Supply Makes Matters Worse
The broader financial crisis of 2007-2008 was the result of the U.S residential housing market collapse. That housing collapse itself was a consequence of an…
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The Financial Crisis 10 Years Later: Fannie and Freddie Fueled the Subprime Mortgage Bubble
If anything symbolizes the American dream, it is homeownership—an asset that is viewed as part of a route from poverty and exclusion to independence and…
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The Financial Crisis 10 Years Later: A Legacy of Racist Government Housing Policy
A decade ago this Saturday, the world shook as Lehman Brothers, the fourth-largest investment bank in the United States, filed for bankruptcy. Representing one of…
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Democratic Attorneys General Wrong on Fair Lending Laws
On Wednesday, a coalition of fourteen Democratic attorneys generals wrote a letter to the Bureau of Consumer Financial Protection urging the acting director, Mick…
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Securities and Exchange Commission Seeks to Liberalize ‘Accredited Investor’ Standard
Great news for middle-class investors and start-up businesses alike—on Thursday, the Securities and Exchange Commission Chairman Jay Clayton announced that the SEC is looking…
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Australian Government Calls for Interchange Fee Ban
One would expect that years of failing policy would force policymakers to reconsider the wisdom of their actions. But not for the Australian Productivity Commission,…
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California Supreme Court Rules Interest Rates May Be ‘Unconscionable’
Last Monday, the California Supreme Court ruled that interest rates on loans over $2,500 could be deemed ‘unconscionable’ even if usury laws permit them. In…
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Finance Regulators Create New National Charter for Innovative ‘Fintech’ Companies
After years of speculation, the Office of the Comptroller of the Currency (OCC) announced Tuesday that it would begin considering applications for special purpose…
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New York State’s Flawed Online Lending Report
Earlier this month, the New York Department of Financial Services (NYDFS) released a study of online lending, including findings and recommendations for changes in…
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Appeals Court Rules Federal Housing Finance Agency Unconstitutional
Big news out of the Fifth Circuit Court of Appeals—the Federal Housing Finance Agency (FHFA) is unconstitutionally structured. The FHFA was created in the wake…
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Five Questions for Bureau of Consumer Financial Protection Nominee Kathy Kraninger
Kathy Kraninger, President Trump’s nominee to head the Bureau of Consumer Financial Protection (formerly known as the Consumer Financial Protection Bureau, or CFPB), will…
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Bureau of Consumer Financial Protection Must Define New Rulemaking Powers
When Congress passed the Dodd-Frank Act in 2010, there was an unprecedented allocation of power to the Bureau of Consumer Financial Protection (BCFP—previously known as…
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Last Chance for the 115th: Bring Accountability to the Financial Regulators
In CEI’s “Free to Prosper: A Pro-Growth Agenda for the 115th Congress,” my colleagues John Berlau and Iain Murray made the enduring recommendation…
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How to Improve Rulemaking at the CFPB
This week, the Competitive Enterprise Institute submitted comments to the Consumer Financial Protection Bureau, on how it could improve its rulemaking to provide a better…
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Finance Regulators Pave Way for Banks to Reenter Small-Dollar Loan Market
Under the letter of the law, banks can now reenter the small-dollar lending space. On Wednesday, the Office of the Comptroller of the Currency (OCC)…
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Consumer Financial Protection Bureau Reexamines Anti-Discrimination Enforcement
This week President Trump signed a resolution of disapproval overturning one of the Consumer Financial Protection Bureau’s most controversial regulatory actions—the inappropriate application of…
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Ending Disparate Enforcement at Consumer Financial Protection Bureau
Just last week, Congress voted to overturn one of the Consumer Financial Protection Bureau’s most controversial regulatory actions—a guidance document that was used…
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Post Office Payday Loans: A Stunningly Bad Idea
Like clockwork, every so often a new member of Congress will rehash an old, tired idea: having the United States Postal Service (USPS) make short-term,…
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Congress Should Axe Backdoor Auto Finance Rule
This week, Congress has a unique opportunity to repeal one of the Consumer Financial Protection Bureau’s worst regulatory actions. Using the Congressional Review Act (CRA),…
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Acting Director Asks Congress for Reform of Consumer Financial Protection Bureau
On Monday, the Consumer Financial Protection Bureau released its first semi-annual report to Congress under its new Acting Director, Mick Mulvaney. A routine procedure…
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Commonwealth Nations Beating America on FinTech Regulation
While the United States continues to have healthy development of financial technologies—thanks predominately to unparalleled access to capital and technology—it is at risk of falling…
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Arizona Becomes First State to Establish FinTech Sandbox
As the only state where all four North American deserts reside, it’s fitting that Arizona became the first state to establish a “sandbox” for financial…
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3 Proposals to Temper the Federal Payday Loan Rule
When the Consumer Financial Protection Bureau finalized a rule regulating payday loans in October last year, I wrote that this could be the end…
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3 Reasons the Senate Should Pass Financial Reform
The Senate is expected to vote on its first major piece of financial reform this week since the Dodd-Frank Act of 2010. A bipartisan bill…
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The Government Killed Free Checking—Can Amazon Save It?
Amazon's move into banking services spells good news for currently under-served consumers, who often rely on relatively expensive financial services such as payday lending or…
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If the Payday Lending Rule Stays, Ability-to-Repay Does, Too
Many in the financial services industry seem to believe the CFPB's ability to replay rule doesn’t impact them and it’s not worth fighting. That is…
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Government Not Only Source of Regulation for Finance
One of the most misunderstood and underappreciated aspects of free market economics is the idea of private or “self” regulation. Up until recently, private enterprises…
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The Myth of Independence at the Consumer Financial Protection Bureau
The myth of Consumer Financial Protection Bureau independence invalidates the Bureau’s protection from the President and Congress. The extreme insulation is predicated on protecting the…
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Mulvaney Saving, Not ‘Dismantling,’ Consumer Financial Protection Bureau
Effective consumer protection does not require a body as unaccountable, powerful, and ideologically driven as the Consumer Financial Protection Bureau. In short, it does not…
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The State of Financial Regulation
President Trump will deliver his inaugural State of the Union address next week, where he will outline the administration’s agenda for the coming year. Here…
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A New Day at the Consumer Financial Protection Bureau
According to Acting Director Mick Mulvaney, the Consumer Financial Protection Bureau will now stick to enforcing consumer protection laws as written, but not attempt go beyond that…
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Durbin Amendment Update: No More Free Checking for the Poor
The Durbin Amendment strikes again. Today brings further evidence that the little-known amendment authored by Sen. Richard Durbin (D-IL), which imposed price controls on…
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Tax Reform Outperforms Government Programs on Community Investment
Tax reform is the gift that keeps on giving. Americans for Tax Reform has documented the ever-growing list of companies providing pay raises, bonuses, 401(k)…
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The White House Can Save the Small-Dollar Loan Industry
The Consumer Financial Protection Bureau's small dollar loan rule should be retracted on Paperwork Reduction Act violations alone. …
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Taming the Beast: Reform Ideas for the Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau’s complicated, one-size-fits-all rules with high compliance costs favor large banks with armies of lawyers while restricting the working poor’s access…
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7 Reasons to Oppose the Federal Payday Loan Rule
Congress should use the Congressional Review Act to overturn the Consumer Financial Protection Bureau's small dollar loan rule.
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House Takes Lead on Bank Reform, Senate Should Follow
The House of Representatives has passed a significant piece of financial legislation, H.R. 3312, the “Systemic Risk Designation Improvement Act.”…
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Ex-Im Nominee Scott Garrett Rejected, Swamp Claims Another Victim
Appointing Scott Garret to lead the Export-Import Bank should have been an area of broad agreement between the parties.
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Big Changes Needed to Senate’s Financial Reform Bill
While the Economic Growth, Regulatory Relief and Consumer Protection Act is a good first step, Republicans must push for more dramatic reform.
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Overturn CFPB’s Payday Loan Rule to Protect Vulnerable Consumers
Members of Congress must demonstrate the courage to stand up for consumers and against the rogue agency.
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What Should Congress Do About the Volcker Rule?
The Volcker Rule is a Dodd-Frank regulation that prohibits federally insured banks from engaging in “proprietary trading,” which is trading with their own capital. It…
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Under New Leadership, What is the Future of the CFPB’s Payday Loan Rule?
In the current uncertainty surrounding the future of the Consumer Financial Protection Bureau (CFPB), several issues require urgent attention. While the most pressing may…
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Tear Down the Wall Between Banking and Commerce
The separation of commerce and banking has little relevance in the 21st century.
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Fed Confirms Government Regulation Is Not the Answer to Equifax Data Breach
More regulation will not help protect the financial system against cyber attacks, such as the Equifax hack.
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Pressure Grows to Reform Bank SIFI Designations
What makes a bank risky? While a simple question, the answer is anything but. As the 2008 crisis proved, managing risks in the financial system…
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Why Congress Should Block the CFPB Payday Loan Rule
Republicans have been looking for a political win for a while. They finally got one this week by overturning the Consumer Financial Protection…
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Will New Zealand Forget the Benefits of Economic Freedom?
As an Australian, there are two things I have always admired about New Zealand—their remarkable national rugby team and their stunning embrace of…
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Senate Set to Vote to Block CFPB’s Harmful Arbitration Rule
After months of speculation, the Senate will today vote to block the Consumer Financial Protection Bureau’s (CFPB) rule banning financial institutions from including arbitration clauses…
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Government Regulation is Not the Answer to the Equifax Hack
The recent Equifax hack has placed an enormous amount of pressure on legislators to further regulate the credit-reporting industry. While such a response may be…
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Congress Should Fix Fintech Lending Model
The House Financial Services Committee marked up a whopping 22 bills last week. While many are noteworthy, such as ending Operation Choke Point, repealing…
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Financial Transactions Tax Not the Answer for Africa
French President Emmanuel Macron is advocating for a Europe-wide tax on financial transactions to fund more foreign aid for Africa.
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Congress Should Roll Back New Payday Loan Rule
The hysteria in Washington around the release of the Consumer Financial Protection Bureau’s final short-term, small-dollar loan rule has been immense.
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New Research, Same Story: Government Housing Policy Doesn’t Work
The Urban Institute today published an updated report, titled Nine Charts about Wealth Inequality in America. As part of the project, the authors highlight…
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Bank Regulatory Relief in Time for White House ‘Deregulation Day’
Happy Deregulation Day! Today, the Trump administration is celebrating the benefits of an America liberated from red tape. As I mentioned in a blog…
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What White House ‘Deregulation Day’ Can Do for Finance and Banking
On Monday the Trump Administration is launching the first ever Deregulation Day, highlighting the benefits of an America liberated from bureaucracy.
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Senate Introduces Regulatory Relief for Regional Banks
Removing burdensome restrictions on regional and community banks will ensure financial stability while helping local communities prosper.
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Nine Years on from the Financial Crisis and We’re No Safer
The real cause of the 2007-08 financial crisis was overwhelmingly the product of government intervention.
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CEI Comments: Volcker Rule Has Failed to Make Financial System More Stable
CEI submitted comments on the Office of the Comptroller of the Currency’s (OCC) proposed revision to the Volcker Rule, a federal regulation that bans…
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Might Australian Financial Regulators Finally Embrace Greater Competition?
Over the past few weeks, I have been rather critical of the state of financial regulation in Australia. A banking scandal earlier this month revealed…
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Human Freedom Is Key to African Prosperity
Earlier this week at a presentation to the Cato Institute, authors Greg Mills, Jeffrey Herbst, Olusegun Obasanjo, and Dickie Davis, discussed their new book…
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Debit Cards Fee Limits Have Big Impact on Payday Loans and Overdraft Charges
Seven years on from the inception of the Durbin Amendment, it has pushed nearly a million consumers out of formal financial services by raising the…
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Poll: Americans Don’t Trust Big Bank Regulators
Bank regulators should foster an environment of financial competition, where institutions compete on the merits of their products and bear their own risks, instead of…
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Ending the Myth of ‘Too Much’ Bank Competition
It’s time to let the idea that too much competition is bad for financial stability finally die.
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Congress Moves on Financial Reform Bills
Nearly a decade on from the 2007-08 financial crisis, it is clear that the federal regulatory regime is not working.
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5 Ways ‘Consumer Protection’ Hurts Consumers
Financial regulation does not have to be a zero-sum trade-off between consumers and businesses.
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Fix Payday Loans with More Competition
Last week, I wrote about the devastating impact that the Consumer Financial Protection Bureau’s (CFPB) new regulation on short-term, small-dollar loans could have upon…
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Why Africa Needs Economic Freedom
That is the topic I presented earlier this week as part of the panel discussion, Perspectives on African Development, at the Department of State’s…
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Why Economic Freedom Is the Best Weapon against Poverty
This blog post is adapted from a speech delivered to the Foreign Service Institute at the United States Department of State on August 29, 2017.