When smaller financial institutions, such as credit unions, are inundated with regulations from multiple agencies simultaneously, their ability to meet the needs of members is hampered and services are curtailed.
How ironic to see banks complain about being victimized by nuisance lawsuits filed by consumers over missing warning notices at ATMs - notices that were required to stop banks from victimizing consumers with nuisance charges at ATMs.
With new entrants from China, fresh capital could be made available to entrepreneurs and business owners who otherwise might fail to find financing. Also, remember the fears in the 1980s that the Japanese were buying up America?
If the government could eliminate contract rights in this way, then it would be hard to imagine what contracts could not be set aside in the name of market efficiency.
The real losers would be the biggest banks, the holders of second liens, not investors in first mortgages. Those investors might come out ahead, and homeowners and municipalities certainly would.
"Isn't it true that there has never been a major crisis that resulted from excessive exposures to what was considered risky, and that these have always resulted from excessive exposures to what was perceived as not risky?"
If a senior mortgage executive tells you "there's nothing to worry about, we've got exceptional controls and a great track record in measuring and managing mortgage servicing rights," it is probably worth getting a second opinion.
Labeling a quarter of the U.S. population as un- or underbanked may be derisive, but naming rights still go to those who control the financial services market - banks.
Unreasonably high taxes generate less, not more revenue for governments. Likewise, banks might make more money with lower fees, and become more compliant and less hated.
PricewaterhouseCoopers failed to warn shareholders and the public about increased risk at Barclays. The auditor gave the British bank a clean report card on internal controls over financial reporting. We now know those controls were seriously deficient.
