The Cordray appointment may make bank compliance issues a focus of this year's presidential campaign. Bankers should not think of this potential outcome as good news.
Banks are receiving huge inflows of non-interest bearing deposits, and are in effect investing the funds in safe and liquid government-backed securities. Great now, but not so good for the long term.
At the World Economic Forum there will be calls for restoring dignity and economic viability to all, but the need for a paradigm shift will remain unacknowledged.
Considering the variety of proposals floated recently to restrict money market mutual funds, it seems people at some government agencies really want to put MMFs out of business.
Private equity's impact on job creation has come to forefront over the last week. Never in my memory have we had a political issue that so distorts reality in favor of emotion.
The main goal of this legislation is to replace the insolvent secondary market dinosaurs with a private market solution by encouraging investors to participate and increase liquidity.
The CFPB can and should impose safeguards against predatory payday lending institutions. And big banks should take heed and stop providing these lenders with lines of credit.
Setting up a bureaucracy free of any checks and balances is based on a Platonic, that is, an anti-democratic, idea. It rests on the assertion of the superior knowledge of the employees of the bureau.
