Consumer advocates, regulators and others are encouraged when companies take a "we want to design the best product" approach rather than a "we want to meet a minimum threshold" approach.
From the Card Act to the CFPB to Durbin, new regulations succeed only in raising the prices or crimping availability of financial services. Memo to politicians: Google "unintended consequences."
Finally, senior policymakers are focusing on negative equity. But the answer to the problem is to change borrowers' incentives, not to abrogate contract and property rights.
The credit card industry's proposed deal to settle long-pending retailer lawsuits set insiders chattering, divided over how much each side won and lost in the deal.
Why would a bank issue prepaid debit cards to its customers? It's an inferior product for consumers and banks alike. Issue prepaid credit cards instead, with four times the interchange.
Due to ever-increasing compliance requirements, consumers have already lost free checking. Now, the Bureau's sights are set on general purpose reloadable prepaid cards.
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.
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.
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.
