August 13, 2020
The recent death of Alexander Kearns, the 20-year-old day trader who took his own life, has sparked a conversation about the business practices of an increasingly important sector of both tech and finance.
July 21, 2020
Dodd-Frank has caused harmful and sometimes disastrous effects for consumers, investors, entrepreneurs, and Main Street financial institutions such as community banks and credit unions. The ray of sunshine is that there have been bipartisan efforts to provide regulatory relief from some of Dodd-Frank’s biggest burdens, as well financial regulatory agencies creating more flexible rules within the law.
July 17, 2020
CEI has praised Kathy Kraninger, director of the Consumer Financial Protection Bureau, for her many deregulatory initiatives that—in contrast to her predecessor, Richard Cordray—protect consumer choice and beneficial innovation. Yet, we have also criticized her for letting the CFPB continue to pursue some of the meritless litigation of the Cordray era.
July 2, 2020
On June 29, the Supreme Court ruled the structure of Consumer Financial Protection Bureau to be unconstitutional. Chief Justice John Roberts delivered the majority opinion, arguing that “the structure of the CFPB violates the separation of powers,” but noting that “the CFPB Director’s removal protection is severable from the other statuary provisions bearing on the CFPB’s authority.” In non-legalese, this essentially means that the agency may continue to exist so long as the CFPB director is removable by the president at will.
June 18, 2020
Debt collection firms play a vital role in a market economy, as part of the "plumbing"—the underlying architecture—that makes modern credit markets possible. Legislation to constrain the debt collection industry would disrupt credit markets, ultimately hurting consumers.
June 10, 2020
To counter the financial damage from America’s national lockdown, the Federal Reserve has taken unprecedented stepsy. Most of these moves received grudging acceptance even from many Fed skeptics. But the Fed’s expanded powers are all the more reason to be skeptical of its entering into activities the private sector clearly could do and is doing, such as payments services and cryptocurrency.
June 3, 2020
On May 19, student loan servicer Navient filed for summary judgement on a CFPB lawsuit started over three years ago. In the filing, Navient urged Judge Robert D. Mariani of the Middle District of Pennsylvania to stop the litigation, arguing that the agency has yet to bring forth any evidence to support its claim that the company purposefully misled borrowers into forbearance.
June 2, 2020
To paraphrase a famous financial services commercial from the 1970s and 1980s, when J.K. Rowling asks, people answer. When the famed author of the Harry Potter series of books requested an explanation of bitcoin on Twitter in May, hundreds of people raced to reply. On May 17, CEI's John Berlau joined the fray in a tweet thread addressed to Rowling.
May 20, 2020
The HEROES Act calls for trillions of dollars in new deficit spending and includes a number of longstanding progressive pet projects unrelated to the COVID-19 pandemic. Yet, there is a free-market pony in the middle of this pile of big-government initiatives: Affirming the legality of banking services to marijuana-related firms in states that have declared the substance legal.
May 8, 2020
As the economic fallout from the COVID-19 pandemic continues to wreak havoc, it’s crucial that struggling Americans have access to affordable short-term credit. Congress should reject calls to include a nationwide interest rate cap in the next COVID-19 relief package. Setting an arbitrary limit on interest rates would prevent millions of already struggling Americans from getting credit.