Industry representatives are howling about the lack of consumer benefit from the Durbin amendment, but we still know very little about the impact of the debit fee cap.
Presidential candidates shouldnÂ't rely on crowd-pleasing gimmicks or trick plays to reform the banking system, but the execution of the basics. This means focusing on the time-tested risk-return tradeoff and restructuring our existing deposit insurance system to be truly risk based.
Even if Operation Choke Point officially ended, U.S. regulators have continued to apply the policy of threatening investigations and ruinous fines against banks that service "high-risk" customers in disfavored industries.
The reform has returned bankruptcy to its intended function as a last resort for consumers, rather than a way for the wealthy to game the system at everyone else's expense.
The bureau's proposed standards would drive lenders out of short-term, small-dollar lending, just as the OCC's 2013 rules did. This time, however, there will be few, if any, regulated institutions left to fill the void.
If we can't identify adequate capital to bear mortgage credit losses when they are incurred, aren't we setting ourselves up for another series of bailouts in the next housing downturn?
The Fed's policy of not adjusting check discrepancies of less than $25 has been in place for many years. Banks should be permitted to establish similar deposit adjustment limits without fearing regulatory sanctions.
