Have Regulations Hurt Bank Profits?
New York Times
October 19, 2011
Henderson, Wade; Calhoun, Michael
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
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