Why CFPA is a “terrible” idea
April 26, 2010 | federal legislation, industry | Comments (0)From a column at IStockAnalyist.com:
As a practical matter, that will presumably mean the agency will, for instance, cap fees and rates on credit cards, limit prepayment penalties on mortgages, and who knows what else.
Which is to say, the CFPA will be unique among banking regulators: it will exist to, at the margin, help weaken the financial system, by preventing banks from offering profitable products that their customers actually want. Instead, the agency will get in between lender and borrower and force banks to price key products at levels that will either undermine their profitability or render them uneconomic, or useless, or both.
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