Prudent consumers
June 8, 2010 | federal legislation, industry | Comments (0)The Wall Street Journal covers a speech by Fed Board member Elizabeth Duke:
“I have every confidence that competition will ultimately restore innovation, but with products that are safer, simpler, and more transparent to consumers,” Fed Board Governor Elizabeth Duke said, outlining five principles that she believes can guide industry and policymakers toward “balancing access to credit and sound risk management.”
Those five principles: enhanced consumer protection, prudent underwriting, transparency, easy to understand credit disclosures and retail mortgage contracts, and rules that stifle competing interests that negatively impact consumers. If employed effectively, these principles could protract the “robust system” that Duke said is necessary for economic growth.
Can’t argue with the principles. But what if the practice of “consumer protection” leads to limite choice?
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