Calls to Scrap Consumer Agency to 'Protect Consumers'
Firestorm of president's appointees
- Duration 8:07
- Date Jan 7, 2012
Firestorm of president's appointees
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Forget the firestorm raging over the president's recess appointments this week like the director of the consumer protection agency.
Someone here says we need to send the entire agency to recess.
Hi everyone I'm Cheryl Casone and -- in the cash and man.
Park accident crew this week we've got Wayne Rogers Jonathan Hoenig Tracy Byrnes and -- late -- also joining us they are different.
The Economic Policy Institute mr.
Crist endorsing itself.
Welcome all of you today Tracy I don't want to start with you because you know use of the best way to protect consumers is to get rid.
Other news consumer protection agency -- -- -- what the president says this exposed did Trace out -- -- Things do these days -- we're talking about more power hungry bureaucrats and needless regulation.
And compliance can -- that are -- can be passed on to the consumer -- the agency created to help the consumer is gonna end up hurting in the end.
Corporate America Bank of America Bank of America recently tried to impose fees on its customers and what do they do they -- back but he's gone.
-- let the capital markets do it themselves.
You know when back in 2011.
In LA back -- -- two weeks ago ha -- -- agency -- -- come up with 21 roles I'm curious now what they're gonna do it 2012 not a they've got this appointment and -- -- you do you think that they're gonna.
Give us a hundred -- 200.
Well -- it's every every time one of these agents who by the way you'll -- this is created under the Dodd-Frank.
Dodd-Frank is 2200 pages long nobody knew what was in it when they voted on the congress once again a massive morality you know statements about it.
Didn't understand it and now you come out you appoint a czar to run this thing it has no budget it creates its own budget it creates its own rules as you rightfully pointed out 21 -- -- so far.
And they're out totally out of control every one of these agencies and proliferate itself.
And it appoints more and more people and you have -- regulation -- that -- some of which are at odds with each other by the way if you read it carefully so it's impossible to comply you -- there is no way the federal government is gonna continue to do this.
I mean it's some point we have to have some kind of a revolution in this country I think it just -- -- insane as what it's going off.
Well Chris tonight again the goal under the president and here is to help the consumer protect the consumer front.
Unscrupulous lending practices.
Do we really need that much protection from this agency.
-- yeah I think -- 20072008.
Shows us that there is a very clear need for this kind of an agency.
Those regulatory functions were spread across so many different.
Government agencies the -- -- -- consolidate them into 11 the ball is very efficient.
And secondly you know this is gonna help consumers because it's gonna prevent us the kind of abuse of practices that led to be incredible.
Consequences of 2007.
And 2008 that's right well that's way to protect Madonna is estimated that they don't and that all of they are right -- Jonathan -- -- left and they hang it.
You know and fees that are hidden I mean that's the plan here that is not a bad thing -- Jonathan.
Well that's the theme that the president -- Chris is that -- that he the president has really did spouting since day one that.
Unregulated financial markets are what killed the economy's.
And an economy that finance ears are all you know nefarious -- but is not that that scroll just demonstrated it.
Bernie Madoff Citigroup every single -- financials vision Christian you're shaking your head but with highly regulated coming in at 2008 there have been -- regulated for years.
-- -- Tracey pointed out it's a regulation that actually encourages that the collapse makes it harder to that to detect and I think quickly.
When the president stands up and says well now we've got -- 1800 number we -- called safe you're not getting a fair deal on your mortgage it makes a mockery of the president.
I can also get for clothes on Brady's that's but that's another story from the very de LA -- -- investors think about this I mean.
I'm learning investment community is worried of -- gonna be too much regulation thrown out against the consumer and that pulls them back from spending which -- everything.
Well you're already seeing that you're seeing how about half of credit lines -- -- -- because banks don't know what's gonna happen is what's gonna happen they sell a loan to Freddie or Freddie or Fannie and also and they get that long put back don't look remember the -- credit crisis.
This has zero absolutely zero to do the credit crisis of oh wait.
You have the transaction in Germany and AKA John Paulson and Goldman Sachs the problem and that was you had some person at a credit rating agency -- garbage AAA the same they treasury bond and he goes bankrupt a -- go bankrupt.
A month later.
This doesn't do it about twenty million people up payday lenders this has nothing to do financial institutions -- only affects the -- small group.
That is it taking out loans only to win bases would target incredibly huge interest rates.
Nothing to do finance.
You know Tracy senator Kay -- much of Texas made a -- common about the she came out and said.
This is an agency that has quote a lots of power no accountability and quote -- -- -- point.
I think she's describing just about every agency we have right now I'm so dumbfounded that Christian use the word of cents.
And was referring to the government -- -- think they do is that Beijing Kristen look I get the notion that there were some people that might have gotten.
Does the -- pull over their eyes but still -- hang -- You can't just consistently blame the banks for this everybody else signed on the dotted line and you know what maybe everybody should wake up and start reading.
The words above the dotted line you do not need a government agency did dictate how you should think Chris Cindy Anthony's been.
You -- and that's exactly what that's exactly what the bureau was going to do to make sure principal mission of it is to make sure consumers are educated so that they understand yeah.
We gave the entrance and -- That's something that that is something crazy that financial institutions should welcome because quite frankly you're good yeah financial institution -- -- couldn't make sure -- now understand their Miller an agency you don't need an agency to do that pivot.
Should do with the -- -- -- about it it was happening already right now.
We were already living you know in a world where banks were actually and in other shadow banking industry for being fair and upfront.
About what they were charging they know that -- -- yeah it does look like Kristi vanished.
Know what was that the way it was this this is not created an ice alone is needed to deal with some -- -- you equations and.
It is not am I -- John labeled in all fairness though we did have the financial crisis 2008 the banks had their hands and that.
It is a fair point that we were gonna have some type of backlash the concern now that John from the investment community is that they're gonna go too far.
To the other side of the spectrum and over regulate is that the -- -- absolutely -- -- you're right about banks overstepping our bounds -- reason was regulations were very US regulator.
Did you have everything in your toolbox to handle this crisis and they will tell you yes right the problem was they did not enforce the regulations and this director right now is dealing with payday lenders -- lot of military -- totally out of their -- on these people are you take I'm blown out from two weeks on your next -- -- a post -- -- they -- about 16% interest virtually all in our heads about twenty million people not -- financial system.
Wayne you're in that you're in that space you deal lets face it in your business every day do you think that that's a fair assessment.
No I hit the -- -- is fundamentally an -- that is I said it starts with the Dodd-Frank bill itself the whole bill should be thrown out.
If you can't beat you can't regulate this industry that way it should be competitively you go back to the Glass-Steagall bill which was canceled in 1999 and you resurrected that.
And allowed competition -- -- well this.
Then you wouldn't have this problem at all.
I -- and -- you're if you're a bit lately you wait you're in the same -- a Christian and now we need is better regulation effective -- -- it's not I got better regulate or Madonna well all right well whatever you want competition a bit but not let me just regulate -- competition off.
Okay cook children's estimates that every federal regulator cost somewhere in the area of seventy private sector jobs he doesn't come free is that has a cost.
In the economy pays the price guys great discussion on this issue it's gonna be continuing.