November 17, 2017announced his resignation. He will step down from the agency at the end of the year, prior to the end of his term in 2019. His departure launches Treasury Secretary Steven...
November 16, 2017posted on her web sited consisted of just...
November 10, 2017
November 10, 2017Bloomberg earlier this week, the Federal Reserve’s associate director of supervision and...
November 8, 2017Fannie Mae and Freddie Mac Still Endanger the U.S. Economy.” In it, I discuss two issues that, on first appearance, seem to be in conflict, but in reality, can both be resolved according to free market...
November 1, 2017
Yesterday, Consumer Financial Protection Bureau Director Richard Cordray released a letter to President Donald Trump in which Cordray urged the president to veto Congress’ resolution overturning the CFPB’s anti-...
October 31, 2017
The Spectrum Spectre: Net...
October 27, 2017
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 is far from straightforward and rarely easy to predict. What should be obvious, however, is that there is not a single magic aspect that pinpoints risk.
Yet, Congress has a different take. The Dodd-Frank Act of 2010 determined that there is a magic line – a bank’s asset size. Currently, any bank with over $50 billion in assets is considered a systemically important financial institution (SIFI) and faces heightened prudential regulation. As a result, many run-of-the-mill regional banks are regulated in a similar manner to trillion-dollar Wall Street firms.
Fortunately, a bipartisan bill that would reform the SIFI...
October 26, 2017
Republicans have been looking for a political win for a while. They finally got one this week by overturning the Consumer Financial Protection Bureau’s (CFPB) disastrous arbitration rule, which sought to bar financial companies from using private arbitration over class-action lawsuits—despite the fact that the CFPB’s own study confirmed that private arbitration is better for consumers.
Now they should turn their attention to the small dollar, short-term lending rule issued by the CFPB earlier this month. It is every bit as devastating as the arbitration rule. Congress should block the new rule via a Congressional Review Act resolution of disapproval. Below are just some of the reasons to fight the rule. ...
October 24, 2017
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 in their contracts with customers. The rule is nothing short of a disaster, and we urge the Senate to reject the rule to protect both consumers and financial institutions from a blatant giveaway to trial lawyers. To get an idea of just how destructive the rule is, following is what some of CEI’s experts have said in the past.
Harmful to Consumers
The CFPB claims that consumers will be better off pursuing class-action lawsuits rather than private arbitration. But the reality is just the opposite. As CEI’s Iain Murray and John Berlau have shown in public comments to the Bureau,...