Brian McLane

Media and Social Commentary

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WHAT IS THE CONSUMER FINANCIAL PROTECTION BUREAU?

July 15th, 2012 · No Comments · Business, Politics

We’ve been hearing about the Consumer Financial Protection Bureau a lot lately but I’m wondering if it’s really doing anything.

Recently I blogged about the 2 Billion dollar loss that JP Morgan Chase incurred (which now is reported at 4.4 Billion) as a result of continued financial wrong doing on the part of the institution. Its CEO Jamie Dimon was recently called in front of Congress and was booed and heckled, perhaps he deserved it. Perhaps not. We’ll never know.

However I think the bigger question is where is this new governmental institution, the Consumer Financial Protection Bureau and why and how did it not, could it not stop more derivatives based trading? Another question is how is it even conceivable that ever after all the turmoil of 2008 and the upheaval that resulted from it, that JP Morgan Chase would have no fear of re-engaging in the same activities again?

As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, sweeping financial restrictions were supposed to have been placed on financial institutions that supposedly empowers Congress to break up corrupt banks and other financial institutions, eliminate proprietary trading and stop the bail outs.

Now mortgages are front and center again which begs the question that if The Consumer Financial Protection Bureau cannot deal with the recurring problems which spurred Dodd-Frank, how is it supposed to deal with the mortgage crisis at the same time?

Has anyone checked Fannie Mae’s stock price recently? It’s like 25 cents!

On Monday, the Consumer Financial Protection Bureau put into effect rules for mortgage disclosure that would . The new rules would require potential home buyers to be provided with a simple accounting of likely payments and fees to prevent surprises at closing.

Under the new rules, within three days of applying for a loan, consumers would receive a loan estimate that outlined the terms, including how much interest will be paid, how the interest will change over the life of the loan and the highest loan amount that consumers could face.

After a Republican filibuster President Barack Obama did get his man Richard Cordray into the cabinet level position. And I was interested to hear what Mr. Cordray had to say with respect to Sallie Mae. Yet in addition to the student loan debacle which is threatening to overtake the credit card crisis, there’s more coming. Banks, Mortgages, Student Loans and Credit Cards…. We’re all drinking the Koolaid on this but it’s tasteless.

After all it’s an election year.

consumer financial protection bureau youtube

consumer financial protection bureau youtube

Well they do have a YouTube channel. Click the image above.

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