Conquer Club

jusplay4fun wrote:

FAILURES AND COSTS OF CONSUMER FINANCIAL PROTECTION REGULATION
Second in a series of six papers on Regulation Innovation

From the Harvard Kennedy School

.... taken as a whole, the current system does not deliver the results envisioned when
these laws and regulations were conceived and launched.

A 2015 article in Notre Dame Law Review Online entitled “The Failure of Anti-Money
Laundering Regulation: Where is the Cost-Benefit Analysis?” contains a section subheading called,
“Compliance Costs are Sky-Rocketing.”

the fight against financial crimes has swallowed up the core business of banking, such as providing loans and banking services.

Compliance costs of all kinds are disproportionately high for smaller banks, a fact that tends to
drive some of them to curtail many kinds of consumer services. A survey of 974 community banks by the
St. Louis Federal Reserve bank found this pattern. Compliance expense at the surveyed small banks
amounted to $4.5 billion in 2014, or 22% of net income. This broke down as 11 percent of these banks’
personnel expenses; 16 percent of data processing expenses; 20 percent of legal expenses; 38 percent of
accounting and auditing expenses; and 48 percent of consulting expenses.57

Another unintended effect of regulatory uncertainty and burden is that they can deter new
competitors from entering financial fields, especially banking. This can reduce competition and
innovation.
A final factor is that high regulatory costs, in and of themselves, make financial services
structurally more expensive to produce, and thus less affordable for many consumers. Every financial
service carries a kind of “regulatory tax” that adds to its price tag.
The high costs of compliance should be evaluated in relation to the unsatisfactory and sometimes
perverse outcomes described above. This in turn raises the question, what would it cost to achieve good
outcomes?

January 2019

a half-century of traditional U.S. regulation aimed at promoting consumer financial fairness and inclusion has largely failed.

Controversies
A 2013 press release from the United States House Financial Services Committee criticized the CFPB for what was described as a "radical structure" that "is controlled by a single individual who cannot be fired for poor performance and who exercises sole control over the agency, its hiring and its budget." Moreover, the committee alleged a lack of financial transparency and a lack of accountability to Congress or the president. Committee vice chairman Patrick McHenry, expressed particular concern about travel costs and a $55 million renovation of CFPB headquarters, stating "$55 million is more than the entire annual construction and acquisition budget for GSA for the totality of federal buildings."[57]

jusplay4fun wrote: My investigation says

mookiemcgee wrote:

jusplay4fun wrote: My investigation says

lol, Jimboston 2.0 doesn't even manage his own family finances but as an expert his personal 'investigation' should be for sure be credible right?

Pack Rat wrote:Some people just live in a fabricated space that defies any common sense or logic.

Pack Rat wrote:Trump's insurrectionist verbally attacks DC cop who was hospitalized on January 6th attacks.

Fukn @ss insurrectionist should be jailed and not walking around harassing police.[/b]

Pack Rat wrote:He was once a loyalist for King Trump.

jusplay4fun wrote:

Pack Rat wrote:He was once a loyalist for King Trump.

Pack Rat wrote:

jusplay4fun wrote:

Pack Rat wrote:He was once a loyalist for King Trump.

WoW: pee rat did not use a TikTok Video. STOP the PRESSES Blast this on Social Media.[/quoteMr.

You have quite the man crush on me.

[/quoteMr.

??

I assume that you wanted to quote something I said that you found succinct, cogent, and brilliant, as usual.