Have Regulations Hurt Bank Profits?

October 19, 2011
New York Times 
consumer financial protection bureau news

The recent move by banks to impose debit card fees highlights the need for more transparent and competitive financial products, write Center for Responsible Lending President Michael Calhoun and Leadership Conference on Civil and Human Rights President and CEO Wade Henderson in a New York times commentary. While reforms have been implemented over the past few years to address credit cards and other financial products, Calhoun and Henderson note that debit card markets remain "unfair and dysfunctional." Many banks continue to charge excessive overdraft fees and reorder customer transactions; some have even begun to offer payday loans, they point out. While some large banks have reduced their abusive overdraft fee practices on debit cards, others have not. Congress set up the Consumer Financial Protection Bureau in 2010 to develop ground rules that encourage price transparency and competition. However, the CFPB is still without a confirmed director, leaving the agency significantly weaker than it was intended to be. Without a confirmation from U.S. senators, Henderson and Calhoun warn that the CFPB can only go so far in reducing abusive and predatory practices.
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